EU grants first tariff exemption for China-made electric vehicles to Volkswagen Cupra brand

The EU exempted the Cupra Tavascan from import duties in exchange for price and quota limits. Other Chinese EV makers still face tariffs up to 35.3 percent.

Insights:
The European Commission EUEU has implemented a new regulatory framework for electric vehicles imported from China CNCN, combining additional countervailing duties with a new individual-model exemption mechanism. As of February 11, 2026, the Commission has officially approved a tariff exemption for the Cupra Tavascan, a model produced in China by Volkswagen AG under its Cupra brand. This decision, finalized in February 2026, marks the first use of a minimum-price and annual-quota arrangement to bypass the standard additional duties that have been imposed on imports.
The Cupra Tavascan model from Spanish automobile manufacturer Seat Cupra is displayed during an event held a day before the official opening of the 2023 Munich Auto Show IAA Mobility in Munich, Germany, on September 4, 2023. REUTERS/Leonhard Simon
The Cupra Tavascan model from Spanish automobile manufacturer Seat Cupra is displayed during an event held a day before the official opening of the 2023 Munich Auto Show IAA Mobility in Munich, Germany, on September 4, 2023. REUTERS/Leonhard Simon
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