yeah, they made too many EVs. Plus the high EU tariffs imposed to protect their euro brands. But, like the situation with Canada and China, the EU is working to allow more chinese EVs on their roads. Once that happens, more will buy them because they're generally cheaper.
EU and China are close to deal on electric cars, as Chinese EVs surge even with tariffs in Europe
Fred Lambert | Jan 12 2026 - 6:31 am PT
After months of back-and-forth and the looming threat of a full-blown trade war, the European Union and China are reportedly nearing a deal that would replace the EU’s controversial tariffs on Chinese electric vehicles with a minimum price undertaking.
It looks like sanity might prevail, or at least, a “soft landing.”
According to a new report from
Associated Press, the European Commission and the Chinese government have agreed on a framework that allows Chinese automakers to avoid the punitive duties, which climbed as high as 35.3% for some manufacturers, by committing to a minimum import price for their EVs sold in Europe.
The European Commission published a guidance document on Monday detailing how these “price undertakings” will work. Essentially, instead of paying a tariff at the border, Chinese manufacturers like BYD, Geely, and SAIC can agree to sell their vehicles at or above a certain price floor. This floor is intended to offset the “unfair subsidies” that Brussels claims Beijing has been pouring into its domestic EV industry.
https://electrek.co/2026/01/12/eu-c...ric-cars-as-chinese-evs-surge-tariffs-europe/