by Michael Gauthier
- European officials are reviewing tariffs applied to the Cupra Tavascan.
- SUV is made in China and is subject to a 20.7% tariff on Chinese EVs.
- VW is pursuing an exemption using import quotas and pricing rules.
Thanks to the tangle of modern manufacturing and global supply chains, it’s increasingly difficult to pin down what makes a car genuinely European.
Is an American-made Mercedes or a Chinese-built Volkswagen really German? That’s an important distinction, especially in the era of trade wars and tariffs. However, Volkswagen is hoping its European roots will give it the upper hand.
More: VW’s Cupra Could Be ‘Wiped Out’ By EU Tariffs, Warns CEO
This already appears to be working as Reuters is reporting the European Commission has decided to review tariffs applied to Volkswagen Group vehicles built in China. Instead of a traditional tariff, the automaker is said to be eyeing an “import quota and minimum price mechanism.”
The petition was made by Volkswagen Anhui, which is a joint venture with JAC. It builds the Cupra Tavascan, and the automaker has said tariffs are a “serious threat” to its business.
If the Commission grants the company’s request, the Tavascan could be exempt from a 20.7% levy. This could occur within a matter a months, although it remains to be seen if officials will be swayed by the company’s arguments.
Even if the model were to be exempted from the tariff, the minimum price proposal may not be any better. As the publication noted, officials have “insisted that any minimum prices would need to be as effective and enforceable as the tariffs.”
The South China Morning Post reports automakers face steep tariffs when importing vehicles into Europe. The aforementioned 20.7% tariff on Chinese EVs is on top of a 10% baseline tariff.
The rates aren’t even the same among automakers, as SAIC reportedly gets hit with a 35.3% tariff, BYD with 17%, and Geely with 18.8%.
