EU may lower Chinese tariff for BMW, VW

THE European Commission has indicated that it may consider lowering tariffs on Chinese-made BMW and Volkswagen models as the intricacies of the importation tax are ironed out.

According to a report published by Reuters this week, the European Commission is willing to classify both BMW and Volkswagen as so-called cooperating companies, making them eligible for a lesser 20.8 per cent tariff on their Chinese-made models, down from the higher 37.6 per cent rate under current plans.

Those plans currently see the Chinese-made Mini electric range and Cupra Tavascan (pictured), built in Volkswagen Group’s facility in Anhui, China, were not part of the European Commission’s sample analysis in the lead-up to the tariff announcement, which means both were automatically subject to the highest rate.

The report says the compromise has the potential to impact several European manufacturers that build cars in China and import them to the region.

The German automotive industry has strongly opposed the tariffs due to concerns about retaliation from China, where German car-makers made one-third of their revenue last year. US manufacturer Tesla has asked for its own tariff rate on the Model 3 EV exported to Europe from its Shanghai factory.

The tariff plans are currently in their preliminary stage with finalisation expected in October.

“The parties concerned will be informed of the Commission’s proposal and will have the opportunity to comment in advance of the publication of any definitive measures,” a European Commission spokesperson told Reuters, saying it was also analysing several requests from automotive manufacturers that were not yet producing battery-electric cars in China.

With Reuters