China commerce minister says reached 'soft landing' with EU over EV tariffs - Finance news and analysis from Global Banking & Finance Review
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China commerce minister says reached 'soft landing' with EU over EV tariffs

Published by Global Banking & Finance Review

Posted on April 28, 2026

2 min read

· Last updated: April 28, 2026

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China says it has made progress with EU in EV tariff dispute

Progress in China-EU Electric Vehicle Tariff Negotiations

China's Position and Diplomatic Efforts

BEIJING, April 28 (Reuters) - China and the European Union have reached a "soft landing" in their dispute over EU tariffs on Chinese-made electric vehicles, China's commerce minister said as he met the head of a German automakers group, but urged the bloc to respect WTO rules.

Commerce Minister's Statement

Commerce Minister Wang Wentao said China hoped the German Association of the Automotive Industry would use its influence to urge the EU to "respect free competition, abide by World Trade Organization rules, and amend inappropriate provisions," according to a readout of his Monday meeting with its president Hildegard Muller released on Tuesday.

EU Tariff Decisions and Industry Impact

European Commission's Tariff Measures

The European Commission had imposed additional duties on imported China-made EVs made since 2024. But in February 2026, the Commission approved, for the first time, a request by Volkswagen's Cupra brand to free its China-made Tavascan SUV from tariffs in exchange for a minimum price and annual quota model. 

Collaboration and Future Outlook

China's Openness to Foreign Automakers

Statements from Industry Officials

Separately, industry vice minister Xin Guobin told Sigrid de Vries, director general of the European Automobile Manufacturers' Association, on Tuesday that China welcomed foreign automakers and was willing to work with the association to support joint innovation in the industry, according to a ministry statement. 

(Reporting by Joe Cash and Beijing Newsroom; Editing by Himani Sarkar and Bernadette Baum)

Key Takeaways

  • China and EU reached a “soft landing” over EV tariffs, urging adherence to WTO rules and free competition — as stated by Minister Wang Wentao (en.wikipedia.org)
  • Since 2024, the EU has imposed additional countervailing duties of up to ~38% on China-made EVs on top of a 10% base import tariff; major firms like BYD, Geely, and SAIC have faced specific rates (carbonbrief.org)
  • In February 2026, the EU granted Volkswagen's Cupra Tavascan a tariff exemption under a minimum-price and quota deal—marking the first such case under the new regime (investing.com)

References

Frequently Asked Questions

What did China and the EU agree on regarding electric vehicle tariffs?
China and the EU have reached a 'soft landing' over tariffs on China-made electric vehicle imports, aiming for fair competition while encouraging the EU to respect WTO rules.
What actions has the European Commission taken on Chinese electric vehicles?
Since 2024, the European Commission has imposed additional duties on imported China-made electric vehicles.
How is Volkswagen affected by EU tariffs on Chinese EVs?
Volkswagen's Cupra brand received approval to exempt its Tavascan SUV Coupe, made in China, from tariffs if sold at a minimum price and under a quota model.
What role does the German Association of the Automotive Industry play in this issue?
China hopes the German Association will influence the EU to respect free competition and amend any inappropriate provisions in the tariff policy.

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