The European Commission has accepted a price undertaking proposal submitted by Volkswagen Anhui, exempting the China-built Cupra Tavascan electric sport utility vehicle from additional European Union import tariffs.
The decision, dated Monday, was published in the Official Journal of the European Union on Tuesday. Volkswagen Anhui, a Chinese joint venture of Volkswagen, had submitted the proposal in December, seeking approval for a minimum price and quota mechanism. It marks the first formal review of the EU’s tariffs on Chinese-made battery electric vehicles (BEVs).
The Commission launched an anti-subsidy investigation into BEVs originating from China on Oct. 4, 2023, alleging that Chinese state support distorted competition in the European market. Following the conclusion of the probe in October 2025, the EU imposed additional duties for a period of five years, on top of the existing 10% tariff.
Tariff rates vary by manufacturer. The Cupra Tavascan had been subject to a combined rate of 20.7%, according to EU documentation.
Discussions on price undertakings — arrangements under which exporters commit to minimum pricing levels in exchange for tariff relief — continued during the investigation period. On Jan. 12, China and the EU reached a consensus providing general guidance on such mechanisms for Chinese exporters shipping passenger BEVs to Europe. Volkswagen Anhui’s application was submitted before that agreement.
Chinese authorities had earlier criticized the Commission for holding bilateral consultations with individual companies during the process.
The China Chamber of Commerce to the European Union (CCCEU) said on Wednesday that several Chinese EV manufacturers are considering filing similar price undertaking proposals and expressed hope that the EU would ensure equal treatment.
“Given that Chinese companies’ exports to the EU are often more complex and involve multiple models and business structures, the Chamber further recommends maintaining close and constructive communication with companies to ensure that the arrangements are practical and predictable,” the CCCEU said in a statement.
The Commission’s decision could serve as a precedent for other Chinese automakers seeking tariff exemptions under negotiated pricing mechanisms, as trade discussions between Beijing and Brussels continue.
