Cupra Tavascan: No customs duties on the Chinese SUV

The European Union grants a historic exemption from customs duties on the Cupra Tavascan imported from China.

The European Commission has granted an exemption from additional customs duties on the Cupra Tavascan electric SUV, produced in China, confirmed on February 10, 2026. Until now, the EU imposed, in addition to the 10% duty on car imports, a surcharge of 20.7% to 38% on Chinese electric vehicles to counter what it deemed unfair subsidies.

The agreement with Volkswagen (Anhui), the manufacturer of the Tavascan, replaces these surcharges with a commitment to a minimum import price and an annual quota. As long as sales comply with these conditions, the vehicles will not pay the countervailing duties usually applied.

A Europe with open doors?

This exemption is a first under the European trade policy regarding Chinese electric cars. Reuters highlights that the Tavascan is the first model to avoid these duties since the surcharges came into effect in 2024. For Volkswagen, it is a strategic relief amid pressure on profitability, while the EU seeks to balance industrial protection with consumer diversity.

But this decision could open a Pandora’s box. Chinese manufacturers are considering negotiating customized exemptions as well. Beijing has even softened its stance, allowing manufacturers to deal directly with the EU, which was previously discouraged.

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The EU could thus move towards bilateral agreements on a brand-by-brand basis, creating unpredictable tariff precedents. The question remains: does targeted protectionism on certain models risk undermining the cohesion of the European trade policy? The answer will depend on the next exemption requests and Brussels’ ability to regulate them.

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