The European Union is set to reduce proposed final tariffs on Tesla and slightly lower rates for other Chinese electric vehicle (EV) manufacturers following feedback from affected companies, Reuters news report said.
Tesla’s tariff rate will be cut from 9 percent to 7.8 percent, while other manufacturers like Geely will see a slight reduction from 19.3 percent to 18.8 percent. However, BYD’s tariff will remain at 17 percent, and a peak tariff of 35.3 percent will apply to SAIC and other companies not cooperating with the EU’s ongoing investigation.
These tariffs are part of an anti-subsidy investigation into EVs made in China and are in addition to the EU’s standard 10 percent import duty on cars. The investigation, led by the European Commission, aims to determine whether Chinese automakers are benefiting from unfair state support.
The revised tariffs follow initial proposals from the EU that set a separate rate of 9 percent for Tesla, significantly lower than the 20.7 percent duty for other cooperating companies such as Chery, Great Wall Moto, and NIO. Affected companies, including Chinese manufacturers and their joint ventures with EU automakers, were given 10 days to submit their responses, leading to the revised rates.
The final duties will be put to a vote by the EU’s 27 member states. The tariffs will be implemented unless a qualified majority—15 member states representing 65 percent of the EU population—votes against them.