Europe Weighs Minimum Price on Chinese EVs to Replace Tariffs

The European Union is weighing minimum prices for electric vehicles exported to the bloc from China, signaling a thaw in trade tensions even as the US presses Europe to take a tougher line on Beijing.

China’s Ministry of Commerce welcomed the movement in a statement. Under the plan, steep tariffs on Chinese-made EVs would be replaced by a minimum pricing system that the EU said would take account of state subsidies received by manufacturers. The approach would preserve protection for European automakers while allowing Chinese producers such as BYD Co. to retain profits on vehicles sold in Europe rather than paying them out in tariffs.