Stock Markets February 11, 2026

EU Imposes Extra Duties on China-Made EVs, Allows Model-Level Exemptions

Commission approves Cupra Tavascan tariff exemption; broad list of countervailing duties remains in force on top of 10% import tariff

By Avery Klein
EU Imposes Extra Duties on China-Made EVs, Allows Model-Level Exemptions

The European Commission has applied additional countervailing duties on electric vehicles imported from China since 2024, while EU rules also permit individual car models to seek exemptions tied to minimum prices and quotas. In February 2026, the Commission granted a first exemption to Volkswagen’s Cupra brand for its China-made Tavascan SUV coupe. A detailed list of company-specific duties remains in effect and these surcharges are imposed in addition to the EU’s standard 10% import duty for cars.

Key Points

  • The European Commission enforces additional countervailing duties on China-made EVs since 2024, applied on top of the EU’s standard 10% import duty for cars.
  • Cupra’s Tavascan SUV coupe, made in China, received a conditional exemption in February 2026 in exchange for accepting a minimum price and annual import quota.
  • Company-specific definitive duty rates have been published, including 17% for BYD affiliates, 18.8% for specified Geely entities, 35.3% for SAIC affiliates, 7.8% for Tesla (Shanghai), and 20.7% for Aiways; a general 35.3% rate applies to other companies.

The European Commission has maintained and enforced additional anti-subsidy duties on electric vehicles (EVs) imported from China since 2024, while providing a route for carmakers to request exemptions for specific models under EU rules.

In February 2026 the Commission approved the first model-level exemption when it agreed to exempt Volkswagen’s Cupra Tavascan SUV coupe - built in China - from the additional import duties. The exemption was granted on the condition that Cupra accept a minimum price and an annual import quota for the Tavascan.

According to the China Chamber of Commerce to the EU, Chinese automakers are now considering applications for comparable arrangements for EV models they intend to ship into European markets. The Commission had earlier revised down some of the proposed final duties after companies submitted comments during its anti-subsidy investigation, including a reduction in the proposed rate for China-made Tesla cars and modest downward adjustments for other manufacturers.

All additional tariffs listed below are levied on top of the EU’s standard 10% import duty for passenger cars. The Commission has published company-specific definitive countervailing duty rates. The following list reproduces those rates and naming as provided by the Commission:

  • BYD Group — BYD Auto and affiliates: 17% - applies to BYD Auto, BYD Auto Industry, Changsha BYD Auto, Changsha Xingchao Auto, Changzhou BYD Auto, Fuzhou BYD Industrial, Hefei BYD Auto, Jinan BYD Auto.
  • Geely Group (Asia Euro Automobile Manufacture): 18.8% (Taizhou) - covering Chongqing Lifan Passenger Vehicle, Fengsheng Automobile (Jiangsu), Shanxi New Energy Automobile Industry, Zhejiang Geely Automobile, Zhejiang Haoqing Automobile Manufacturing, Zhongjia Automobile Manufacturing (Chengdu).
  • SAIC Group — SAIC MAXUS Automotive and affiliates: 35.3% - applies to SAIC Motor Corporation, Nanjing Automobile (Group) Corporation, SAIC Volkswagen Automotive, SAIC GM Wuling Automobile, SAIC General Motors.
  • Tesla Co Ltd: an individually calculated duty of 7.8% (Shanghai) was set after Tesla was treated as a cooperating company and requested its own rate.
  • Aiways Automobile: 20.7% - designated as a cooperating company.
  • Other cooperating companies listed by the Commission: Anhui Jianghuai Automobile Companies Group; BMW Brilliance Automotive; Chery Automobile; China FAW Corp; Chongqing Changan Automobile; Dongfeng Motor Group; Great Wall Motor; Leapmotor Automobile; Nanjing Golden Dragon Bus; NIO Holding; XPeng Inc. (These firms are identified in the cooperating category by the Commission.)
  • Volkswagen - Cupra: 0% for the Tavascan SUV coupe, conditional on the minimum price and quota arrangement approved by the Commission.
  • All other companies: 35.3% - listed as the general rate applicable to companies not subject to a company-specific lower cooperating rate or an exemption.

The measures reflect the Commission’s dual approach: applying countervailing duties broadly while allowing targeted, model-specific exceptions when applicants accept binding commercial conditions. The published rates are definitive for the companies listed and operate in addition to the baseline 10% EU import duty on passenger cars.

The Commission’s prior adjustments to some proposed rates, including a lower calculated rate for Tesla and marginal reductions for other carmakers, followed consideration of company submissions during the anti-subsidy inquiry.


Note: This report reproduces the Commission’s outcome and the firm-level rates that have been published. It does not introduce projections, opinions or additional external context beyond the publicised measures and listed company assessments.

Risks

  • Uncertainty over which other manufacturers will successfully secure model-level exemptions - affects automakers planning shipments to Europe.
  • Additional countervailing duties raise import costs for affected China-made EVs, potentially influencing pricing, sales volumes and supply-chain decisions in the automotive and EV sectors.
  • Differing company-specific rates and conditional exemptions could create uneven competitive effects across manufacturers and models within the European auto market.

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