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China and EU Agree to Resume EV Tariff Negotiations Amid Rising Trade Tensions

by Team Lumida
April 3, 2025
in Macro
Reading Time: 4 mins read
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China’s Bold Economic Moves: What You Need to Know Now

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Key Takeaways:

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  • China and the European Union have agreed to restart negotiations on electric vehicle (EV) tariffs, with talks expected to begin soon.
  • This announcement follows President Trump’s recent tariff increases, including a 34% tariff on Chinese goods and a 20% duty on EU imports.
  • The EU had previously imposed tariffs on Chinese-made EVs, with rates set at 17.0% for BYD, 18.8% for Geely, and 35.3% for SAIC.
  • Chinese automakers have challenged these tariffs in the Court of Justice of the European Union, seeking to address the trade barriers.

What Happened?

The Chinese Ministry of Commerce announced that negotiations with the European Union regarding electric vehicle tariffs will resume, aiming to create a favorable environment for investment and collaboration between Chinese and European companies. This development comes in the wake of President Trump’s announcement of additional tariffs, which have heightened trade tensions.

The EU has previously imposed significant tariffs on Chinese EVs, prompting challenges from major automakers like BYD, Geely, and SAIC. These companies are seeking to contest the tariffs in court, arguing that they hinder fair trade practices.


Why It Matters?

The resumption of tariff negotiations between China and the EU is crucial for the automotive industry, particularly as both regions seek to expand their electric vehicle markets. The outcome of these discussions could significantly impact pricing, market access, and competitive dynamics in the EV sector.

With rising tariffs from the U.S. adding pressure, both China and the EU are motivated to find common ground to facilitate trade and investment. Successful negotiations could lead to reduced tariffs and foster a more collaborative environment for EV development and sales.


What’s Next?

As negotiations commence, stakeholders in the automotive industry will be closely monitoring the discussions for any developments that could affect tariff rates and market access. The outcome of these talks will be pivotal in shaping the future of electric vehicle trade between China and the EU.

Additionally, the ongoing trade policies from the U.S. will continue to influence the landscape, as companies navigate the complexities of international trade and seek to adapt to changing regulatory environments.

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© 2025 Lumida Wealth Management LLC is an SEC registered investment adviser. Privacy Policy. Cookies Policy.
Disclaimer Important Information This site is for informational purposes only. Information presented on this site does not constitute as investment advice.

Lumida Wealth Management LLC (‘Lumida”) is an SEC registered investment adviser. SEC registration does not constitute an endorsement of the firm by the Commission nor does it indicate that the adviser has attained a particular level of skill or ability.

Lumida's website (referred to herein as the "Website") is limited to the dissemination of general information pertaining to its advisory services, together with access to additional investment-related information, publications, and links. Accordingly, the publication of the Website on the Internet should not be construed by any client and/or prospective client Lumida’s solicitation to effect, or attempt to effect transactions in securities, or the rendering of personalized investment advice for compensation, over the Internet.

Any subsequent, direct communication by Lumida with a prospective client will be conducted by a representative that is either registered or qualifies for an exemption or exclusion from registration in the state where the prospective client resides.

‍Lead Capture Forms: By submitting your contact information in the forms on this site, you are not obligated to invest in Lumida's product or services.
‍Address: Lumida Wealth Management, 25 W 39th Street Suite 700, New York, NY 10018