(Yicai) April 14 -- Negotiated minimum prices for China-made electric vehicles imported into the European Union would be better for Chinese carmakers than tariffs, according to experts.

Unlike with tariffs, minimum prices are arrived at by negotiation, meaning China and the EU would make concessions to ensure that EVs can be smoothly exported into Europe without tariff shocks, Zeng Zhiling, automotive market director for Asia Pacific at consulting firm GlobalData, told Yicai.

“High tariffs would sacrifice their profits, while a minimum price would help maintain profit margins,” Zeng pointed out.

China's Commerce Minister Wang Wentao and European Commissioner for Trade and Economic Security Maros Sefcovic held talks on April 8 to enhance economic and trade cooperation in response to the US’ "reciprocal tariffs" and started negotiations on EV pricing commitments, the Ministry of Commerce announced on April 10.

Citing a European Commission spokesperson, Reuters reported on the same day that China and the EU had agreed to set a minimum price for China-made EVs that would replace the import tariffs imposed last year.

The EU levied additional tariffs on China-made EVs last October after a nine-month anti-subsidy investigation. For example, an additional 17 percent was levied on vehicles made by BYD, 18.8 percent on Geely Automobile's, 35.3 percent on SAIC Motor's, and 7.8 percent on Tesla's China-made cars.

Setting minimum prices has less impact on Chinese EV exports compared with high tariffs, Cui Dongshu, secretary general of the China Passenger Car Association, also said. Moreover, allowing Chinese automakers to compete in the European market is conducive to promoting the electrification of the region’s auto industry, he added.

"Against the backdrop of the US’ ‘reciprocal tariffs,' China and the EU may quickly resolve some trade disputes to prevent trade frictions from escalating," Zeng noted.

China was the EU's largest car importer by value for the third straight year in 2024. Chinese cars worth EUR12.7 billion (USD13.9 billion) entered the EU last year, according to data released by Eurostat on April 1. In the past six years, China’s auto imports to the EU skyrocketed 1,591 percent.

Editors: Dou Shicong, Futura Costaglione