The European Union is set to make small reductions in the proposed additional tariff rates on EVs from China, with Tesla facing a reduction from 9 percent to just under 8 percent, according to Bloomberg.
The European Union is reportedly set to make another small reduction in additional tariffs on electric vehicles (EVs) from China, before they finally take effect.
The European Union is poised to make small cuts to proposed additional tariff rates on EVs exported from China by Tesla (NASDAQ: TSLA) and other Chinese automakers, Bloomberg said in a report today, citing people familiar with the matter.
Tesla's proposed duty rate would be cut from 9 percent to just under 8 percent, according to the report.
The EU is making the revisions based on new information provided by the companies, the people familiar with the matter said, according to the report.
EU member states will vote on the proposed definitive tariffs before they take effect in November, and the additional levies will be on top of the 10 percent tariffs already paid by Chinese exporters, the report noted.
The European Commission officially launched a anti-subsidy investigation on October 4, 2023, into imports of EVs originating in China.
On June 12, the European Commission pre-disclosed the level of provisional countervailing duties to be imposed on imports of battery electric vehicles (BEVs) from China, with BEV producers cooperating with the investigation paying a weighted average tariff of 21 percent.
At the time, BYD, Geely, and SAIC were listed with separate duty rates of 17.4 percent, 20 percent, and 38.1 percent, respectively.
On July 4, the European Commission announced that it would impose additional tariffs on EVs from China from July 5, with small reductions in the rates, and that BEV producers cooperating with the investigation would pay a weighted average tariff of 20.8 percent. For BYD, Geely and SAIC, the rates were 17.4 percent, 19.9 percent and 37.6 percent respectively.
On August 20, the European Commission published new proposed tariffs for EVs from China, revealing for the first time specifically the 9 percent rate Tesla's China-made vehicles face. Previously, 20.8 percent was applied to the US EV maker.
Tesla submitted a substantiated request for an “individual examination” to determine its tariff level based on the specific subsidies it receives, according to an August 20 statement from the European Commission.
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