EU Reduces Planned Tariffs on Tesla Vehicles Imported from China to 9%

The European Union has announced a reduction in planned tariffs on Tesla vehicles imported from China, lowering the rate from 20.8% to 9%. This decision is part of a broader adjustment to import duties on other electric vehicle (EV) manufacturers.

Tariff Adjustments

Initially, the EU intended to impose higher tariffs on Chinese electric vehicles, citing concerns about the impact of "unfair subsidies" on the European market. However, after receiving feedback, the EU has made slight reductions in the proposed duty rates. The decision follows Tesla's request to the EU to reconsider the tariffs based on specific subsidies it receives in China.

Tesla and Other EV Manufacturers

Tesla's China-made EVs will now face a 9% tariff, a significant reduction from the previously anticipated 20.8%. This move has positively impacted Tesla's shares, which rose over 1% in U.S. trading. Other Chinese EV manufacturers also saw adjustments in their tariffs, with BYD's rate reduced to 17%, Geely's to 19.3%, and SAIC's to 36.3%.

Continued Scrutiny

The EU continues to scrutinise Chinese EV subsidies, with some companies cooperating with the investigation facing tariffs of 21.3%. Those not cooperating will be subject to a 36.3% import duty, slightly down from the previously planned 37.6%.