The European Commission is reviewing a Volkswagen proposal to amend the punitive tariffs imposed on electric vehicle imports from its Spanish subsidiary Seat, manufactured in China.
According to the Official Journal of the European Union on Thursday, VW has suggested replacing the additional tariff of 20.7 percent, in effect since November 2024, with a minimum import price. The measure concerns the Tavascan electric SUV produced in China. Seat has described the tariff--which is levied on top of the standard ten percent duty--as an existential threat to its brand.
The Spanish automaker stated that its offer includes not only a minimum price but also an annual import quota. In April, the EU Commission reached a basic agreement with China to consider minimum prices for China-made electric vehicles as an alternative to tariffs. However, these measures must be equally effective and enforceable as the tariffs. The tariffs were originally introduced to counteract unfair competitive advantages enjoyed by Chinese manufacturers due to state subsidies in China. However, the rules also affect vehicles produced by European manufacturers in China and exported to Europe. Seat added that a decision from the EU could take several months. Until then, the company intends to continue absorbing the additional tariff rather than passing it on to customers.
(Reporting by Philip Blenkinsop and Rachel More; written by Ilona Wissenbach. Edited by Olaf Brenner. For inquiries, please contact the editorial team at frankfurt.newsroom@thomsonreuters.com)
