EU Lowers Tariffs on Tesla EVs
The European Union has decided to reduce the proposed tariffs on Tesla electric vehicles (EVs) imported from China. The new rate will be 7.8%, down from the initially proposed 9%. This decision comes after the EU considered submissions from Tesla and other companies involved.
Adjustments for Other Chinese EV Manufacturers
While Tesla benefited from a decrease, other prominent Chinese EV manufacturers faced minimal adjustments. For example, Geely's tariff rate will be reduced to 18.8% from 19.3%. However, BYD's rate remains unchanged at 17%. Furthermore, companies like SAIC, which are not cooperating with the EU investigation, could face a peak rate of 35.3%.
Standard Import Duties Apply
These tariffs are in addition to the EU's standard 10% import duty on cars, which applies to all imported vehicles. The adjustments reflect the EU's ongoing anti-subsidy investigation into EVs manufactured in China.
Initial Proposals and Reactions
In the prior month, the EU had set initial proposals with a 9% tariff specifically for Tesla, which is distinct from the 20.7% duty applicable to all cooperating companies. This group includes major Chinese producers like Chery, Great Wall Motor Co, and NIO, as well as joint ventures between Chinese and EU automakers.
Next Steps and Political Implications
The revised tariff rates will need to be approved through a vote by the EU's 27 member states. To prevent implementation, a qualified majority—comprising 15 member states that represent 65% of the EU population—must oppose it. While such a majority is rarely achieved, the issue remains politically sensitive.
The European Commission, responsible for the investigation, has yet to comment on this development. Tesla has also not responded to requests for comments regarding these changes.
