Chinese automakers pursue tariff exemptions following Volkswagen breakthrough in Europe

Chinese EV makers seek individual tariff deals with the EU after Volkswagen secured a reprieve. The deals replace duties with minimum prices and sales quotas.

Insights:
The European Union EUEU has officially approved a tariff exemption for the Cupra Tavascan SUV, a model produced in China CNCN by Volkswagen AG . This landmark decision, finalized on February 11, 2026, marks the first time a specific model has been granted such an exemption since the union introduced broad tariffs on electric vehicles manufactured in the Chinese market in 2024. The agreement is conditional upon the German automaker adhering to a strictly defined minimum price and a specific sales quota for the vehicle within the European market.
Technicians work on the assembly line of German carmaker Volkswagen's electric ID. 3 car during a media tour in Dresden, Germany, May 14, 2025. REUTERS/Matthias Rietschel/File Photo
Technicians work on the assembly line of German carmaker Volkswagen's electric ID. 3 car during a media tour in Dresden, Germany, May 14, 2025. REUTERS/Matthias Rietschel/File Photo
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