{"id":696522,"date":"2026-01-15T00:41:12","date_gmt":"2026-01-15T00:41:12","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/696522\/"},"modified":"2026-01-15T00:41:12","modified_gmt":"2026-01-15T00:41:12","slug":"china-eu-tariff-agreement-on-evs-seen-cutting-shipments-but-boosting-profitability","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/696522\/","title":{"rendered":"China-EU tariff agreement on EVs seen cutting shipments but boosting profitability"},"content":{"rendered":"<p>A requirement to set minimum prices for their cars in the European Union will reduce sales there for Chinese <a target=\"_self\" class=\"e1yy41x40 ef9u0v01 css-1ankfgb ecgc78b0\" href=\"https:\/\/www.scmp.com\/topics\/electric-cars?module=inline&amp;pgtype=article\" title=\"\" data-qa=\"BaseLink-renderAnchor-StyledAnchor\" rel=\"noopener\">electric vehicle (EV)<\/a> makers, but higher profit margins will eventually improve their bottom lines and brand reputations, according to analysts and industry officials.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">Assemblers of Chinese pure-electric cars from BYD to Leapmotor will avoid a brutal discount war after European authorities accepted price undertakings to replace punitive anti-subsidy tariffs of up to 35.3 per cent.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">Minimum prices would technically temper sales volume, particularly for low-priced small electric cars, Deutsche Bank analyst Wang Bin said in a research note. But he added that the policy shift would have a positive impact on China\u2019s EV king BYD, which posted a nearly fourfold delivery jump in Europe last year.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">The EU levied tariffs of 7.8 per cent to 35.3 per cent on Chinese-made pure electric cars in late 2024 following more than a year of anti-subsidy investigations.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">The European Commission, the executive body of the EU, and Beijing reached an agreement to remove the tariffs, according to their announcement on Monday. Instead, Chinese EV builders agreed to sell their cars at minimum prices on the continent.<\/p>\n<p datatype=\"p\" data-qa=\"Component-Component\" class=\"e8zc9q40 css-1c6uqr6 ec74h0k1\">The commission outlined how Chinese exporters could submit price undertaking offers, which it said must be \u201cadequate to eliminate the injurious effects of the subsidies and provide equivalent effect to duties\u201d. It encouraged exporters to include commitments such as annual shipment volumes and planned future investments in the EU.<\/p>\n","protected":false},"excerpt":{"rendered":"A requirement to set minimum prices for their cars in the European Union will reduce sales there for&hellip;\n","protected":false},"author":2,"featured_media":696523,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5174],"tags":[209985,209984,209980,3801,1550,1395,57136,2000,299,5187,2557,1699,12726,209979,209983,209982,143850,209456,157921,209981],"class_list":{"0":"post-696522","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-eu","8":"tag-anti-subsidy-investigations","9":"tag-anti-subsidy-tariff","10":"tag-anti-subsidy-tariffs","11":"tag-beijing","12":"tag-byd","13":"tag-china","14":"tag-deutsche-bank","15":"tag-eu","16":"tag-europe","17":"tag-european","18":"tag-european-commission","19":"tag-european-union","20":"tag-ev","21":"tag-ev-tariffs","22":"tag-leapmotor","23":"tag-minimum-prices","24":"tag-nio","25":"tag-price-undertakings","26":"tag-profit-margin","27":"tag-profitability"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115896338700251882","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/696522","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=696522"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/696522\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/696523"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=696522"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=696522"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=696522"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}