TradeHighReportedAccelerating
9.1
EU-China talks yield concessions on EVs, rare earths, tariffs; trade war averted
EUobserver·EU · CN·2 days ago
China and the EU have initiated negotiations to address tariffs and electric vehicle trade, covering subsidies, rare earths, and investments. The next commercial meeting is scheduled for March 2027. This marks a diplomatic effort to de-escalate trade tensions, though the outcome remains uncertain.
Entities
The EU and China have reached a compromise on hybrid vehicle trade, with China agreeing to export curbs and the EU setting an annual import cap of 350,000 units starting December 1, 2026. This agreement, hailed by both sides as a de-escalation, addresses a loophole exploited by Chinese automakers to avoid EV tariffs. Specifics on tariff adjustments, quotas, and the full implementation timeline remain largely undisclosed.