EU reviews removing tariffs on Volkswagen EVs built in China

BRUSSELS, Dec 4 (Reuters) - The European Commission said on Thursday it was reviewing tariffs on Volkswagen's electric vehicles built in China, which the automaker hopes could be replaced with an annual import quota and minimum price mechanism.

Volkswagen's SEAT/CUPRA subsidiary, whose Tavascan all-electric SUV is made at the group's Anhui plant in China, has warned that the tariff poses a serious threat to its business.

The Commission, which set anti-subsidy tariffs on Chinese-built EVs in October 2024, said it had received an offer of an undertaking from Volkswagen Anhui and its review would assess whether it was acceptable and practical.

Volkswagen Anhui and SEAT "have worked intensely to ensure that the proposal made complies with all requirements", a SEAT spokesperson said.

"The proposal includes an annual import quota and a minimum import price," the person said, without giving further details.

If accepted, the Commission could grant an exemption from the 20.7% tariff within months, according to a company statement.

Volkswagen's Anhui plant is a majority-owned joint venture with China's JAC Automobile Group.

The Commission said in April that it had agreed with China to look into setting minimum prices of Chinese-made EVs instead of tariffs, but it has insisted that any minimum prices would need to be as effective and enforceable as the tariffs.

(Reporting by Philip Blenkinsop in Brussels and Rachel More in Berlin. Editing by Ludwig Burger and Mark Potter)

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