European Tariffs on Chinese Made MINI Cooper & Aceman EVs Have Begun

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As of Wednesday, October 30, the electric MINI Cooper and Aceman are subject to European Union tariffs designed to protect the European car industry from government-subsidized EVs from China that could disrupt the market. This policy is a significant blow to MINI’s global strategy, but the company has a response.

The industry-wide tariffs are calculated on a sliding scale based on how companies have cooperated with the EU’s investigation into unfair business practices from Chinese manufacturers. Initially, BMW and MINI faced a 37.6% duty on their products. However, the European Commission recently classified BMW and MINI as “cooperating companies” in its latest draft tariff document on duties for China-made EVs, qualifying them for a reduced duty of 21.3%.

The new electric J01 MINI Cooper JCW is now subjected to 21.3% tariffs.

Why This Could Be Particularly Challenging for BMW & MINI

In addition to reducing profits and potentially making models like the J01 and J05 unprofitable, BMW has voiced concerns over possible retaliatory tariffs from China that could impact its profitable export market there. The Chinese market represents nearly a third of the BMW Group’s global sales.

Why Is the EU Imposing Tariffs on Chinese-Made EVs?

The European Union is imposing tariffs on electric vehicles (EVs) imported from China due to concerns that Chinese automakers benefit from substantial government subsidies, enabling them to sell EVs at lower prices, which could disadvantage European manufacturers.

The EU claims that Chinese-made EVs benefit from significant subsidies from the Chinese government, which enables manufacturers to offer these vehicles at lower prices than their European competitors. These subsidies can include direct funding, tax breaks, reduced interest rates, and support for research and development.

The EU fears that such subsidies create an uneven playing field, making it difficult for European automakers—who don’t receive equivalent government support—to compete on price. This influx of lower-cost Chinese EVs could harm European carmakers and affect local employment.

To determine appropriate tariff levels, the EU launched an anti-subsidy investigation to assess the extent of support that Chinese automakers receive and its impact on the European market. Based on the findings, the EU has imposed tariffs ranging from 10% to 30% on Chinese-made EVs.

MINI’s Solution to Tariffs

MINI plans to expand production of the J01 MINI Cooper and J05 MINI Aceman at its UK plant in Oxford starting in 2026. This strategy will not only avoid EU tariffs but also reopen the possibility of exports to the United States, a market closed off in 2019 due to high tariffs.

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