The European Commission is making concessions to Volkswagen regarding import tariffs on electric vehicles from China. The Cupra Tavascan model, produced at VW's plant in Anhui, China, will be exempt from these tariffs, according to a decision by the Commission published on Tuesday.
To reach this agreement, the Commission and VW subsidiary Seat settled on a minimum import price and maximum import volumes for the vehicle, among other conditions. Cupra is a brand owned by Seat. A Seat spokesperson stated that the company welcomed the Commission's acceptance of proposals from Seat and Cupra. The Tavascan is a European project, developed in Europe and built in China at a plant majority-owned by VW.
VW has been negotiating with the European Commission over tariffs for some time. Until now, the company had to pay tariffs of 20.7 percent on the Tavascan, in addition to the general import duty of ten percent on all foreign vehicles. In January, the Commission presented its proposals on minimum prices, aimed at offsetting the effects of Chinese subsidies. The measures are also intended to create incentives to prevent tariffs from being circumvented by importing, for example, hybrid vehicles.
The anti-dumping tariffs have been in effect since the end of 2024 and can reach up to 35.3 percent. The European Commission aims to protect the European automotive industry from the European market being flooded with cheap electric cars from Chinese manufacturers such as BYD, Geely, or SAIC. In addition to VW, BMW also imports electric cars from China into the EU. Mercedes collaborates with Geely on the Smart brand. Several automakers, including BMW, have filed complaints against the tariffs with the European Court of Justice.
(Reporting by Christina Amann, edited by Thomas Seythal)
