The European Union has thrown its hat in the China trade war gauntlet, but it’s not clear if this will play out exactly in Europe’s favor. According to a report from Reuters, BMW, of all automakers, stands to be one of the hardest-hit brands by the EU’s anti-China tariffs. This is due to BMW’s use of Chinese production and joint ventures for some of its models, including ones sold in Europe.
BMW’s Mini brand looks to be the brand taking it most on the nose with the new Great Wall Motors-produced electric Mini Cooper SE facing a new 38.1% tariff. That’s on top of the 10% import tariff the EU already imposes on electric vehicles. With numbers like these, it is easy to understand why BMW’s CEO Oliver Zipse described tariffs as the “wrong way to go,” last week.
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The European Union’s New Tariff Rules Are No Joke
Imported EVs already had a 10% tariff, but a new investigation designed to combat unfair subsidies has levied new tarrifs on imported EVs from China. Brands that cooperated with the EU got tarrifs ranging from 17.4 to 21%, while brands that didn’t got a maximum of 38.1% added. This is for all Chinese imported EVs, including ones from Tesla, BMW, and more.
Gallery: 2025 Mini Cooper SE First Drive
Now, it should be noted that not all China-import BMW vehicles are going to be subject to the full 38.1% tariff. BMW uses several joint-venture companies to produce China-market vehicles. The not-sold-in-America BMW iX3 and China-only BMW i3 sedan (an electric 3 series, not the i3 you may be thinking of) are two models made in Shenyang by the automaker Brilliance. The iX3 is exported out to Europe and beyond from the Shenyang plant.
But these new tariff rules don’t discriminate against the automakers themselves or if they’re simply parts of joint ventures. The BMW-Brilliance joint venture, as well as the latest team-up with Great Wall Motors, are subject to different tariff rates. Because Brilliance played ball with the EU’s investigation, it will be subject to a lower rate between 17.4 and 21%. Great Wall Motors allegedly didn’t, so it’s subject to the maximum 38.1% tariff.
That’s not great news for the Mini Cooper SE, or its five-door counterpart, the Aceman, which will also be made at the same joint venture plant in China. United Kingdom production won’t happen for either until 2026. Mini has put a lot of energy into making it more competitive and affordable this time around; contributor Tim Stevens drove one recently and enjoyed the experience. It’s a solid lower-cost option that would start right at the €35,000 mark, slightly above Chinese cars like the BYD Dolphin or MG 4.
This 38.1% tariff could add more than 13,000 EUR to the price of the Mini—making it wildly uncompetitive and very unattractive to the budget buyers it originally was marketed toward.
It just seems like the whole world has it in for Mini, and in turn, the whole concept of a small cheap EV. Initially, the latest electric Mini seemed to be a surefire addition to the U.S. market, but the Biden Administration’s 100% Chinese EV tariff no doubt had Mini rethinking its plans. (The same is happening at Volvo right now with the EX30 as well.)
Similarly, these EU tariffs will likely send Mini back to the drawing board, or at least make BMW CEO Oliver Zipse negotiate more intimately with the EU. Other brands may now end up thinking twice when it comes to synergizing and shipping over lower-cost Chinese models to markets in Europe or the U.S. And it’s not even clear if these tariffs will even work to slow down the onslaught of Chinese products.
There’s speculation that BYD’s prices on its Dolphin and Seal models will likely stay the same since they already sell for about double the price in Europe compared to China. A recent study showed that BYD makes a whopping €14,500 of profit on Seal U crossover sold in Europe. Out of all the brands queried, BYD walked away with the lowest tariff penalty.
Either way, it’s quite ironic that one of Europe’s own automakers is going to suffer the most from tariffs aimed at protecting the European car market.
Contact the author: kevin.williams@insideevs.com
The Biggest Victim Of Europe’s Anti-China EV Tariffs: The Mini Cooper
In recent years, the global automotive industry has been rapidly shifting towards electric vehicles (EVs) in order to reduce greenhouse gas emissions and combat climate change. Europe, in particular, has been leading the way in the push for electrification, with many countries implementing ambitious targets for phasing out internal combustion engine vehicles.
One of the key players in the European EV market has been the Mini Cooper, the iconic British brand known for its quirky design and go-kart handling. Mini, which is owned by German automaker BMW, has been steadily increasing its EV offerings in response to growing consumer demand for electric vehicles.
However, the Mini Cooper now finds itself facing an unexpected hurdle in its quest for EV dominance in Europe: the continent’s anti-China tariffs on electric vehicles. In a bid to protect its domestic industry and ensure a level playing field for European automakers, the European Union has imposed tariffs on EVs imported from China, where many Mini Cooper electric models are manufactured.
These tariffs have had a significant impact on the cost competitiveness of Mini Cooper EVs in Europe, making them significantly more expensive than their European-made counterparts. As a result, the Mini Cooper has been struggling to compete with other EVs in the European market, many of which have lower price points due to being manufactured within the EU.
The consequences of these tariffs have been far-reaching for the Mini Cooper brand. Sales of Mini Cooper EVs in Europe have declined sharply, with many consumers opting for cheaper alternatives from European automakers. This has not only hurt Mini’s bottom line, but also undermines its ability to meet the European Union’s strict emissions targets.
Furthermore, the tariffs have also cast a shadow over Mini’s future in the European EV market. As the automotive industry continues to shift towards electrification, Mini’s inability to compete effectively in the European market could have long-term implications for the brand’s viability.
In response to these challenges, Mini Cooper has announced plans to shift production of its electric models to Europe in order to mitigate the impact of the tariffs. While this move may help to make Mini Cooper EVs more competitive in the European market, it also represents a significant logistical and financial investment for the company.
Ultimately, the biggest victim of Europe’s anti-China EV tariffs is not just the Mini Cooper, but the broader push for electrification in the European automotive industry. By creating barriers to entry for Chinese-made EVs, the European Union risks stifling innovation and competition in the EV market, ultimately hindering progress towards a greener, more sustainable future.
As the automotive industry grapples with the challenges of electrification, it is crucial that policymakers strike a balance between protecting domestic industry and fostering a competitive, innovation-driven market. Only by addressing these issues can we ensure that the transition to electric vehicles is a success for both manufacturers and consumers alike.