Stock Markets February 25, 2026

BMW and EU Explore Minimum-Price Route to Replace Tariffs on China-Made Minis

Discussions center on a minimum import price model after an earlier tariff exemption for Volkswagen’s SEAT/Cupra unit; BMW continues separate legal challenge to EU duties

By Nina Shah
BMW and EU Explore Minimum-Price Route to Replace Tariffs on China-Made Minis

BMW and officials from the European Commission are reported to be discussing a mechanism that could substitute EU tariffs on the German automaker's electric Mini vehicles produced in China with a minimum import price. The talks follow a recent agreement between Brussels and Volkswagen on a tariff exemption for the SEAT/Cupra Tavascan, and come as BMW pursues a legal challenge to the duties that were imposed after an anti-subsidy probe.

Key Points

  • BMW and the European Commission are reported to be discussing a minimum import price model as an alternative to EU tariffs on China-made Mini electric vehicles.
  • The talks follow a February agreement between Brussels and Volkswagen that secured a tariff exemption for the SEAT/Cupra Tavascan, and similar exemptions may be pursued by other manufacturers, including Chinese EV makers.
  • BMW is simultaneously contesting the EU tariffs in court with other carmakers; the tariffs were imposed after an anti-subsidy probe at the end of October 2024 and the rate for BMW is 20.7 percent.

BMW is engaged in talks with the European Commission over a potential minimum pricing framework that could stand in for the current EU tariffs applied to Mini electric vehicles built in China, according to two people familiar with the matter.

The discussions come in the wake of a separate arrangement struck earlier in February between Brussels and Volkswagen, which resulted in a tariff exemption for Volkswagen Group’s SEAT/Cupra brand on its battery-electric Tavascan SUV coupe after several months of negotiations. Observers say similar exemptions may be sought by other manufacturers, including Chinese carmakers with EVs destined for the European market.

Sources who spoke about the BMW talks described a proposal centered on a minimum import price as a possible alternative to the tariff regime. A BMW spokesperson declined to comment on the reported negotiations. The European Commission also did not provide an immediate comment when asked.

At the same time as these discussions, BMW is pursuing a legal route to contest the EU duties, joining other automakers in a court challenge. The duties were implemented at the end of October 2024 following an anti-subsidy investigation. For BMW, the tariff rate on the relevant China-made electric models is 20.7 percent.

The tariffs affect BMW models that are manufactured in China, notably the electric Mini Cooper and the electric Mini Aceman. While minimum import pricing would represent a different approach to addressing concerns that prompted the duties, the outcome of ongoing talks and the parallel legal challenge remain uncertain.


Context and next steps

The conversation between BMW and the Commission signals a willingness to explore mechanisms other than straight tariff application. How those negotiations proceed and whether similar arrangements will be extended to additional carmakers or models is not yet clear.

BMW's legal action continues independently of the discussions on potential pricing arrangements, leaving open multiple avenues by which the current tariff landscape could change.

Risks

  • Legal uncertainty - BMW is challenging the EU tariffs in court alongside other carmakers, leaving the ultimate status of the duties unresolved and potentially affecting planning for manufacturers and suppliers.
  • Policy and negotiation risk - Talks over a minimum import price are ongoing and may not result in an agreement, which would maintain the current tariff exposure for automakers and could influence pricing and supply-chain decisions.
  • Market exposure - Any persistence of the 20.7 percent tariff on BMW’s China-made electric Mini Cooper and Mini Aceman could have implications for European EV pricing, competitiveness, and margins in the automotive and electric vehicle sectors.

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