EU Will Lower Proposed Tariffs On Tesla, Other EVs from China - Report

According to an exclusive Bloomberg report, the European Union is anticipated to slightly reduce the additional tariff rates proposed for Chinese-imported electric vehicles after considering the companies' submissions.

This change may have a major impact on other Chinese automakers as well as Tesla. Notably, this is due to the fact that Tesla also produces electric vehicles at its Gigafactory in Shanghai, exporting some of them to the European Union.

Tesla's tariff is expected to be reduced to just under 8%, down from the original 9% proposal. There was no change in BYD's 17% tariff. Geely's new interest rate would be 18.8%, down from 19.3% previously. According to the source, SAIC and other companies that do not cooperate with the EU investigation will face a maximum rate of 35.3%.
For the record, the EU announced these tariffs earlier this year, following an investigation that began last year. The goal was to see if Chinese EV manufacturers benefit from import subsidies in the EU.

Following the investigation, the EU stated that "the value chain in China benefits from unfair subsidies, posing a threat of economic injury to EU battery-operated electric vehicle producers."

Because of this, consumers within this bloc will probably pay a significantly higher price for these Chinese EV imports due to the increased tariffs imposed by the EU.

China and affected companies were given 10 days to submit comments, which the Commission took into account when determining revised tariff rates.

The EU's 27 member states will vote on the proposed final duties. They will be implemented unless a qualified majority of 15 EU members, or 65% of the EU population, votes against them.