The European Union has agreed to lift the countervailing duties applied to imports of Volkswagen China (Anhui)’s fully electric Cupra Tavascan SUV, granted that the model complies with a minimum price requirement and import quota system.
Following the acceptance, which was published in the European Union’s official journal on Tuesday, several Chinese representatives criticized the bloc for providing limited information and negotiating individually with automakers.
Last month, upon welcoming EU’s “renewed commitment to restarting price undertaking negotiations,” Beijing has urged Brussels not to negotiate independently with individual manufacturers, preferring a unified approach.
Official documents show that the company began reviewing the VW subsidiary’s undertaking offer in early December — a month before it issued a guidance document, available to Chinese EV manufacturers, on these price undertaking offers.
Criticism
The fully electric Tavascan had been subject to an extra 20.7% tariff on top of an existing 10% duty since the EU imposed tariffs on Chinese fully electric vehicles in late 2024.
The extra tariffs on imported Chinese EVs have rates varying by automaker and were imposed following an investigation that found Chinese subsidies gave them an unfair advantage over other manufacturers.
After a year of trade talks, which resumed amid rising global tensions following US tariff announcements last April, the EU appeared willing to consider China’s proposal to set a minimum vehicle price instead of the duties.
Volkswagen China’s undertaking offer for the Cupra brand’s model Tavascan was the first one to be evaluated by the EU since the possibility became available.
EU has kept confidential the agreed quota and minimum price set for the model, however, despite a request for details from the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCME), Reuters reported.
A few hours later, the China Chamber of Commerce to the EU (CCCEU) commented that several automakers are still “assessing and considering whether to submit their own price undertaking proposals individually to the EU, based on their respective business situations.”
The CCCEU Automotive Working Group — which includes several automakers, auto parts suppliers, financial institutions, logistics providers, among others — held technical conversations with the EU regarding the guidance document issued last month.
However, the institution believes communication could be clearer and reminded the EU to apply fair treatment to all Chinese automakers.
“The Chamber highlights the importance of clear and equitable procedures in handling price undertaking proposals,” the CCCEU wrote.
The institution urged the EU to “adhere to the principles of fairness, transparency, and non-discrimination in the assessment and implementation of price undertakings, treating Chinese enterprises on an equal footing.”
Commission Guidance
In January, the European Commission had issued a guidance document on the submission of price undertaking offers for Chinese automakers, in the context of the tariffs imposed over a year ago.
Individual rates range from 7.8% for Tesla‘s Shanghai-produced vehicles to 35.3% for non-cooperating manufacturers, on top of the bloc’s standard 10% vehicle import tariff.
Combined with the bloc’s standard 10% vehicle import tariff, Chinese EV makers face levies of up to 45.3%.
Automakers must commit to minimum import prices, demonstrate simple sales channel structures, and may include pledges for EU investments to strengthen their applications.
The guidance establishes that each undertaking offer “is assessed against the same legal criteria laid down in the EU basic anti-subsidy Regulation according to WTO rules, in an objective and non-discriminatory manner.”
The guidance specifies that a Minimum Import Price “must be set at a level appropriate to remove the injurious effects of the subsidisation.”
The Commission said undertakings may be submitted individually by a single company or jointly by several manufacturers, though joint submissions “must take into account each individual company’s specifics.”
