The European Union may lower import tariffs on electric vehicles made by Volkswagen and BMW in China. Two sources revealed that the EU Commission has signaled this possibility to both automakers.
Sources say the EU Commission will classify Volkswagen and BMW as cooperating companies. This will lower the tariffs on their China-made models to 20.8%. Currently, the tariffs stand at 37.6%. Previously, BMW’s electric MINI and Volkswagen’s Cupra Tavascan were not included in the EU’s sample analysis. They would have automatically faced the highest tariff rates.
The EU imposes import tariffs on Chinese electric vehicles. This move harms top European car manufacturers. They produce cars in China and export them to the EU. The German Automotive Industry Association opposes the tariffs. Last year, one-third of German car manufacturers’ revenue came from China. The association fears China will retaliate. Volkswagen declined to comment on the reports. BMW has not yet issued a statement. The EU will make a final decision on the tariffs this fall. A spokesperson for the European Commission stated that some companies have not yet produced pure electric vehicles in China during the investigation. They are analyzing these companies’ requests and will conduct a final assessment later. The spokesperson added, “Relevant parties will be notified before the European Commission announces any final measures and will have the opportunity to comment.”