European officials are evaluating the tariffs imposed on the Cupra Tavascan. The SUV is manufactured in China and currently faces a 20.7% tariff applied to Chinese-built EVs. Volkswagen is seeking an exemption using import quotas and pricing regulations.
Due to the complex nature of global manufacturing and supply chains, determining what qualifies as a truly European car has become increasingly difficult.
That distinction matters now more than ever, especially in an era defined by trade tensions and tariff battles. Volkswagen, however, is hoping its European heritage will give it an advantage.
That hope may already be yielding results, as the European Commission has decided to reassess the tariffs placed on Volkswagen Group vehicles built in China. Rather than relying on a standard tariff, the automaker is reportedly pursuing an “import quota and minimum price mechanism.”
The request originated from Volkswagen Anhui, a joint venture with JAC. This facility builds the Cupra Tavascan, and the company has stated that current tariffs present a “serious threat” to its operations.
If approved by the Commission, the Tavascan could be exempted from the existing 20.7% levy. This change could take effect within a few months, although it remains uncertain whether officials will accept Volkswagen’s reasoning.
Even if the model is granted an exemption, the minimum pricing proposal might not offer a significant improvement. According to the report, officials have “insisted that any minimum prices would need to be as effective and enforceable as the tariffs.”
Automakers importing vehicles into Europe face substantial tariff burdens. The 20.7% tariff applied to Chinese EVs is stacked on top of an existing 10% baseline tariff.
Tariff rates also differ by manufacturer. SAIC reportedly faces a 35.3% tariff, BYD encounters a 17% rate, and Geely is subject to an 18.8% tariff.
