European Commission Considers Lower Tariffs On Chinese Made VW And BMW EVs

The European Commission has indicated a willingness to potentially lower import tariffs on China-made electric vehicles produced by Volkswagen and BMW. This could significantly impact the European EV market and reshape the dynamics between European and Chinese automakers.

Under the current proposal, EVs imported from China would face tariffs of up to 37.6%. However, the Commission is considering classifying Volkswagen and BMW as “cooperating companies,” which would grant them a reduced tariff rate of 20.8%. This would apply to models like BMW’s China-made iX3 or the Mini Cooper E, as well as the Cupra Tavascan, manufactured in Volkswagen Group’s Anhui factory.

The potential concession by Brussels comes as a response to concerns raised by European automakers who manufacture cars in China and import them to Europe. The German car industry, in particular, has been vocal in its opposition to the tariffs, fearing retaliation from China, a crucial market for German automakers.

The decision to potentially lower tariffs for Volkswagen and BMW is seen as a strategic move to balance the interests of European manufacturers while addressing concerns about competition from Chinese EVs. Tesla has also requested a separate tariff rate for the Model 3 exported to Europe from the Shanghai factory.

The European Commission has until autumn to finalize its decision on the tariffs, which are currently preliminary. The Commission is currently looking at requests from companies that were not producing battery-electric cars in China during the investigation and will make a final assessment later in the process.

We’ll have to wait and see how the final decision on tariffs impacts the competitive landscape and the overall growth of the EV market in Europe, but there’s no doubt that this development has a huge potential to influence the strategies of both European and Chinese automakers.

• Read More: Provisional Tariffs Imposed On Chinese EV Imports By The EU As Negotiations Stalls