BERLIN, July 16 (Reuters) - The European Commission has

signalled to Volkswagen and BMW that it

may consider lowering tariffs on the two carmakers' imports of

China-made EVs, two sources with knowledge of the matter said.

The European Commission was willing to classify the two

carmakers as so-called cooperating companies, the sources said,

making them eligible for a 20.8% tariff on their China-made

models, down from a tariff of 37.6% under current plans.

BMW's China-made electric Mini and Volkswagen's Cupra

Tavascan, produced by the SEAT brand, were not part of Brussels'

sample analysis in the run-up to the tariff announcement, which

means they were automatically subjected to the highest tariff

level.

If agreed, it would be a first, early compromise by Brussels

on tariffs that will hurt some of Europe's top car manufacturers

because they make cars in China and import them to the region.

The German car industry has also opposed the tariffs because

it is worried about retaliation from China, where German

automakers made a third of their revenue last year. U.S.

carmaker Tesla has asked for its own tariff rate.

The decision was not yet final, said the two sources, who

spoke on condition of anonymity due to the sensitivity of the

matter. Volkswagen declined to comment. BMW was not immediately

available for comment.

Brussels has until autumn to make a final decision on the

tariffs, which are preliminary for now.

A spokesperson for the European Commission said it was

analysing a number of requests from companies that were not yet

producing battery-electric cars in China during the

investigation, and would make a final assessment later in the

process.

"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," the person added.