The likely future EU trade chief stressed that any minimum price agreements with Chinese EV manufacturers must be as robust as the recently imposed tariffs, according to a Reuters report.

New Tariffs Spark Negotiations

The EU recently slapped hefty tariffs of up to 45.3% on Chinese-built electric vehicles, but that hasn’t stopped negotiations for alternative solutions. EU trade officials are currently in China discussing potential “price undertakings” – agreements where Chinese manufacturers would commit to minimum prices for their EVs exported to Europe.

Sefcovic’s Stance on Enforcement

Maros Sefcovic, the European commissioner designate for trade, made his position clear during a parliamentary committee meeting:

“What is very important for us is that even if you go (for price undertakings), they have to be equally effective and enforceable as the import duties we introduced. So that’s absolutely key for us.”

Political Process Ahead

The trade commissioner nominee is part of a larger group of 26 commissioners who need parliamentary approval before taking office. Sefcovic, who’s been serving as a commissioner in various roles since 2009, brings significant experience to these negotiations.

EVXL’s Take

This development significantly impacts several Chinese EV makers who’ve been expanding into Europe, including XPeng, who’ve been spotted with new vehicles at Belgium’s port of Zeebrugge. The EU’s tough stance on Chinese EVs reflects growing concerns about fair competition and market protection in the rapidly evolving electric vehicle sector.

The outcome of these negotiations could reshape the European EV market landscape and influence global EV pricing strategies. What’s your take on these potential price agreements? Share your thoughts in the comments below.