China has made progress with EU in EV tariff dispute

China has made progress with EU in EV tariff dispute

In February 2026, the European Commission approved Volkswagen’s Cupra bid to exempt its China-made Tavascan from tariffs under minimum pricing and quotas.

China, EV, electric vehicles, BYD
Chinese EVs awaiting export. The European Commission had imposed additional duties on imported China-made EVs made since 2024. (Reuters pic)
BEIJING:
China and the European Union have reached a “soft landing” in their dispute over EU tariffs on Chinese-made electric vehicles, China’s commerce minister said as he met the head of a German automakers group, but urged the bloc to respect WTO rules.

Commerce Minister Wang Wentao said China hoped the German Association of the Automotive Industry would use its influence to urge the EU to “respect free competition, abide by World Trade Organization rules, and amend inappropriate provisions,” according to a readout of his Monday meeting with its president Hildegard Muller released on Tuesday.

The European Commission had imposed additional duties on imported China-made EVs made since 2024. But in February 2026, the Commission approved, for the first time, a request by Volkswagen’s Cupra brand to free its China-made Tavascan SUV from tariffs in exchange for a minimum price and annual quota model.

Separately, industry vice minister Xin Guobin told Sigrid de Vries, director general of the European Automobile Manufacturers’ Association, on Tuesday that China welcomed foreign automakers and was willing to work with the association to support joint innovation in the industry, according to a ministry statement.

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