Cupra Tavascan Granted EU Tariff Exemption; VW Pledges Minimum Import Price and Quota

On February 9, the European Commission approved an application from Cupra, a brand under the Volkswagen Group, granting its China-made all-electric SUV, the Tavascan, exemption from additional import tariffs. Previously, in addition to the standard 10% tariff, the vehicle was subject to an extra 20.7% duty. In exchange, Volkswagen has committed to setting an annual import quota and a minimum import price, and has made related arrangements regarding its electric vehicle investment projects in Europe. This marks the first time the EU has accepted such a price undertaking. Due to the high tariffs, Cupra’s operating profit plummeted by 96% in the first nine months of 2025, amounting to only €16 million. The Tavascan was launched at the end of 2024, with annual deliveries reaching 36,000 units—accounting for 11% of the brand’s total sales. The China Chamber of Commerce for Import and Export of Machinery and Electronic Products stated that several Chinese companies are considering submitting similar applications and called on the EU to treat them fairly.