The European Commission said on Thursday it is assessing a proposal from Volkswagen related to tariffs imposed on the automaker’s electric vehicles manufactured in China, raising the possibility that the current duties could be replaced by an import quota and minimum price mechanism.
The review follows warnings from Volkswagen’s SEAT/CUPRA brand, which produces its Tavascan all-electric SUV at the group’s Anhui plant in China, that the tariff presents a serious threat to its business outlook in Europe.
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The Commission imposed anti-subsidy tariffs on Chinese-built electric vehicles in October 2024 as part of its effort to counter what it views as unfair state support.
A Commission spokesperson said it had received a formal undertaking offer from Volkswagen Anhui and would now assess whether the proposal is acceptable and workable. A SEAT spokesperson confirmed the company’s involvement, saying, “The proposal includes an annual import quota and a minimum import price,” adding that both Volkswagen Anhui and SEAT “have worked intensely to ensure that the proposal made complies with all requirements.”
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If the offer is approved, the Commission could grant an exemption from the 20.7% tariff within months, according to a company statement. Volkswagen’s Anhui facility operates as a majority-owned joint venture with China’s JAC Automobile Group. The Commission said earlier this year that it had agreed with China to explore minimum price arrangements as an alternative to tariffs, while stressing that any such system must be as effective and enforceable as existing duties.