In another key development that could bolster the status of the European Union (EU), the bloc is reportedly in talks with China to abolish tariffs on imported electric vehicles (EVs). Indeed, the two sides have agreed to begin negotiations on lifting the import duties, according to a new report.
The move is yet another step toward increased duty-free trade agreements for the European collective. Specifically, they agreed to launch free trade negotiations with the United Arab Emirates (UAE) in another major step toward increased economic relations on a global scale.
JUST IN: 🇨🇳🇪🇺 China and the European Union agree to start negotiations to abolish EU tariffs on Chinese electric vehicles. pic.twitter.com/Hndb5wyId5
— Watcher.Guru (@WatcherGuru) April 10, 2025
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European Union Eyes Tariff-Free Trade of Chinese EVs as Talks Begin
The global economy saw a massive headwind come its way with the United States’ unveiling of its Liberation Day tariff plan. Although it faced a 90-day pause from US President Donald Trump, it has still wreaked havoc on the markets, pushing geopolitical tensions to new heights.
However, that market may be set to get some relief this week. Indeed, the European Union and China have begun talks to abolish tariffs on Chinese EV imports. According to reports, with US expansion for those EV manufacturers appearing unlikely, they have now turned to Europe.
Also Read: Trump Open to Talks With China—Hours After 125% Tariff
The two sides could fast-track expansion efforts this year. Chinese President Xi Jinping is discussing a possible cancellation of tariffs the EU imposed in late 2024. Specifically, the bloc instituted tariffs that can reach heights of 35%, on top of its standard 10% import tax.”
According to the original report, “very concrete steps are already being discussed” between both sides. Moreover, if an agreement is reached, it could propel companies like the Chinese-based BYD. The Tesla (TSLA) competitors have been able to take significant market share in 2025. Indeed, sales in Europe and Germany plummeted for the Elon Musk-led brand.