EU grants tariff exemption to Chinese-made Cupra Tavascan

After several months of discussions, the European Commission approved an exemption from the EU’s current tariffs for the Tavascan coupé SUV, made by Cupra, which is part of Volkswagen. The model is an electric vehicle manufactured in China, making it the first imported car from China to avoid EU tariffs.

A SEAT/Cupra spokesperson told Reuters by email: “The undertaking includes import quotas and an agreed minimum price.” They did not provide further details. The Cupra Tavascan is an SUV launched in 2024 by Cupra (which is separate from SEAT), part of the Volkswagen Group.

The model is manufactured in China’s Anhui province. Until now, in addition to the standard 10% tariff, it would have been subject to an additional duty of 20.7%. This meant that the product faced total EU tariffs of 30.7%.

For Volkswagen, it is one of its most important current models. The company has invested heavily in its Anhui plant, while Cupra’s profit fell by 96% in the first three quarters of 2025. The company argued that tariffs were one of the main factors behind the decline. The Tavascan also accounted for around 11% of Cupra cars sold last year.

The China Chamber of Commerce to the EU also commented on the situation. In its statement, it said that some Chinese electric vehicle manufacturers are currently considering whether to submit their own price proposals for their models to the European Commission. The statement also says that the Chinese side “urges the European side to uphold the principles of fairness, transparency and non-discrimination in the decision-making and implementation of price undertakings”.

European tariffs

Under EU rules, carmakers can negotiate individual exemptions from the current EU tariff regime, introduced in 2024. These duties were added to the standard 10% tariff, which will continue to apply to this model.

The additional duties were set individually based on an investigation assessing how much the carmakers had benefited from support by the Chinese government. In the highest cases, total duties reached as much as 45.3%.

China’s leadership sharply criticized the decision to impose these tariffs at the time and launched its own investigations into some European companies. China also challenged the decision at the World Trade Organization.

Tesla has the lowest rate, at just 7.8%, while China’s SAIC Motor has the highest, at 35.3%. BYD was assigned a rate of 17%, Geely 18.8%, and other companies that cooperated with the investigation, such as Chery and BMW Brilliance Automotive, 20.7%. Companies that did not cooperate with the investigation were assigned a rate of 35.3%.

It will be interesting to see whether Chinese and other carmakers seek further exemptions and whether they are granted. Chinese carmakers played a significant role in the increase in electric vehicle sales in Europe last year, despite the tariffs. So far, it looks as though this trend will continue in 2026.