EU tariffs on imports of China-made EVs

• SAIC Group faces the highest tariff at 35.3%, while Tesla received the lowest rate at 7.8% after an individual assessment; BYD, Geely, and other cooperating Chinese manufacturers face rates between 17% and 20.7%
• Volkswagen's Cupra Tavascan SUV coupe became the first model to receive a 0% tariff exemption in exchange for accepting a minimum price commitment and import quota restrictions
• Chinese automakers are now actively pursuing similar exemption deals for EV models they plan to export to Europe, according to the China Chamber of Commerce to the EU

EU Tariffs on China-Made Electric Vehicles: Summary

The European Commission has imposed additional tariffs on electric vehicles imported from China, on top of the EU's standard 10% import duty. However, carmakers can now negotiate exemptions for individual models through minimum pricing and quota agreements.

Key Tariff Rates:

• BYD Group: 17% additional duty
• Geely Group: 18.8%
• SAIC Group: 35.3% (highest rate)
• Tesla (Shanghai): 7.8% (individually calculated rate)
• Other Cooperating Companies: 20.7% (includes BMW Brilliance, Chery, Great Wall Motor, NIO, XPeng, and others)
• Non-cooperating companies: 35.3%
• Volkswagen Cupra Tavascan SUV: 0% (first exemption granted)

Major Developments:

In February 2026, the Commission approved Volkswagen's request to exempt its Cupra Tavascan SUV coupe from tariffs in exchange for accepting a minimum price and annual import quota—the first such arrangement. Chinese automakers are now actively seeking similar deals for their EV models destined for Europe, according to the China Chamber of Commerce to the EU.

Market Implications:

The tariff structure creates a tiered competitive landscape, with SAIC facing the steepest barriers at 35.3%, while Tesla benefits from preferential treatment at 7.8%. The exemption mechanism introduced with the Cupra deal establishes a new precedent that could reshape China-EU EV trade dynamics, potentially allowing manufacturers to maintain market access while addressing EU subsidy concerns. This development comes amid escalating trade tensions, with China warning of potential retaliatory measures against European products.