The European Commission Considers Lowering Tariffs on Electric Mini and Cupra Tavascan

Tariff Reduction for BMW and VW

The European Commission is contemplating a reduction in tariffs for the electric Mini and Cupra Tavascan imported from China. Initially hit with a 37.6 percent tariff, BMW and VW may see this reduced to 20.8 percent if they are deemed cooperative in the EU probe into subsidies.

Concerns and Support

German automakers, particularly BMW, have expressed concerns about potential retaliation from China due to the tariffs. Despite this, the EU is considering lowering the tariffs on these models to encourage cooperation.

State Aid and Tariffs

The Commission’s investigation revealed that state aid in various forms, such as cheap loans and subsidized batteries, influenced the tariff rates. BMW and VW may benefit from financial assistance from the Chinese state, leading to a proposed reduction in tariffs.

Industry Impact and Unity

The tariffs have divided EU member states, with some supporting the measures while others oppose them. The lack of unity reflects the challenges posed by China’s growing auto industry and the need for a cohesive approach to address economic threats.