Europe and China Take Step to Resolve Dispute on Electric Vehicles

New York Times - WorldCenter-LeftEN 3 min read 100% complete by Keith BradsherJanuary 12, 2026 at 03:43 PM

AI Summary

medium article 3 min

The European Commission and China's Ministry of Commerce have established a framework that could resolve the dispute over electric vehicle tariffs. The Commission will allow carmakers to voluntarily limit EV imports from China and set minimum prices, potentially exempting them from anti-subsidy tariffs imposed in late 2024. This initiative aims to foster trade relations beyond the United States amid concerns over trade deficits and import limitations. Automakers' plans to limit imports and set price floors require approval from both the European Commission and EU member countries. Volkswagen had previously volunteered to limit shipments of its Cupra EVs from China in exchange for tariff relief, setting the stage for this broader agreement.

Key Entities & Roles

Key Player Opposition Context

Donald Trump 30% Hefei 30% Olof Gill 40% United States ×240% China’s Ministry of Commerce 40% Cupra Tavascan ×250% European Union ×260% Volkswagen ×470% China ×680% European Commission ×790%

Keywords

electric vehicles 100% tariffs 90% european commission 80% china 80% trade dispute 70% volkswagen 60% car imports 60% anti-subsidy duties 50% trade ties 40%