Tesla Set to Benefit from Reduced EU Tariffs on Chinese-made EVs
The EU decreases the additional duty on Tesla's Chinese-made EVs from 20.8% to 9%. Chinese companies forming joint ventures with EU producers may benefit from lower tariffs. The final decision on tariffs on Chinese-made EVs is due in approximately two months.
Following new examinations requested by Tesla, the EU executive has altered its punitive levies on Chinese-made EVs, marking a watershed moment in the continuing inquiry into suspected Chinese subsidies.
Initially planned at 20.8% in July, Tesla's revised decreased additional rate currently sits at 9%, a significant reduction that tries to level the playing field. The European Commission stated that this change is consistent with attempts to address what it sees as unjustified subsidies, with the regular 10% levy on automobile imports already in place.
The Commission has acknowledged Tesla's request to review its tariff rate in light of particular subsidies received. It was verified that Tesla received lower subsidies from the Chinese government than other Chinese EV manufacturers being investigated by Brussels.
While the EU maintains that Chinese EV production has benefited from significant subsidies, suggested tariffs on other companies could reach 36.3%. This percentage is slightly lower than the original proposed duty of 37.6% for non-cooperating firms.
In reaction to the EU's findings, China's commerce ministry expressed strong disagreement and worry, promising to take the appropriate steps to protect Chinese enterprises. The ministry slammed the draft findings for being based on the EU's unilateral determinations, calling for a sensible and pragmatic approach to prevent trade frictions from growing.
Tesla, a cooperating firm in the probe, declined to comment on the latest developments. Meanwhile, other sampled businesses, like as BYD, Geely, and SAIC, are projected to suffer slightly lower provisional tariffs than previously estimated.
The EU's final decision on tariffs for Chinese-made EVs is expected within the next two months, subject to stakeholder feedback by August 30. The definitive duties will be voted on by the EU's 27 member states, with implementation expected unless a qualified majority of 65% of the EU population votes against them.
The EU reduces extra tariff on Tesla's Chinese-made EVs from 20.8% to 9%.
Chinese firms in joint ventures with EU producers may benefit from lower duties.
Final decision on tariffs for Chinese-made EVs expected in about two months.
Source: REUTERS