The EU and China reach a deal on minimum prices for electric vehicles to avoid tariffs

The European Union and China have agreed on a plan to resolve a major trade dispute over electric vehicles (EVs). The deal involves Chinese EV makers committing to minimum selling prices in the EU market, which would allow them to avoid new tariffs that the EU was considering.

This agreement follows weeks of tension, with the EU investigating what it called unfair subsidies for Chinese EVs and China accusing the EU of protectionism. The deal is seen as a step to prevent a full-blown trade war over clean technology.