EU Lowers Proposed Tariff on Tesla’s China-Made Electric Vehicles

The European Union said on Tuesday that it intends to lower a planned additional tariff on Tesla’s electric vehicles (EVs) imported from China to 9 percent amid the bloc’s ongoing probe of Chinese state aid to carmakers.
The commission stated that after conducting an investigation, including visits to Tesla’s factories in China, it found that Tesla receives fewer subsidies from Beijing than the domestic EV producers scrutinized by Brussels.
The latest plan still represents an increase in duties the EU imposes on China-made car imports. The tariffs will be added to the standard 10 percent duty that the bloc applies to all imported cars.
Three Chinese EV carmakers that Brussels investigated will also receive slightly lower provisional duties. BYD is set to pay a tariff of 17 percent, slightly lower than the 17.4 percent the EU originally prescribed. Geely will pay a rate of 19.3 percent instead of 19.9 percent.
SAIC Group, a Chinese state-owned carmaker, will still face the highest import rate of 36.3 percent.
The EU’s current anti-subsidy investigation is set to be completed in two months.
Following this period, the proposed tariffs could become the EU’s definitive duties, which typically remain in effect for five years, if the majority of the bloc’s 27 member states support the plan in October’s vote.
On Tuesday, the commission said the WTO consultation wouldn’t affect the timeline of the ongoing anti-subsidy investigation into China-made EVs.
“The Commission is confident of the WTO-compatibility of its investigation and provisional measures.”