EU to Reduce Proposed Tariffs on Tesla and Other Chinese EVs

The European Union is making plans to slightly lower the additional tariff rates for electric vehicles imported from China by Tesla Inc. and other car manufacturers, according to a report released on Tuesday.

Sources indicate that the proposed tariff for Tesla will be adjusted to just below 8%, a decrease from the previously intended 9%. This revision is based on updated data provided by the companies involved.

Member states of the EU are expected to vote on the final tariff proposal, which is anticipated to be implemented in November. These revised rates will be in addition to the existing 10% duty that all Chinese exporters incur when sending electric vehicles to Europe.

Reports earlier on Monday suggested that Tesla’s new tariff rate would be set at 7.8%. Moreover, for Chinese manufacturers that did not cooperate with the EU’s investigation, the maximum tariff will now be 35.3%, a slight reduction from the previously planned 36.3%.

As negotiations continue between the EU and various stakeholders, there is a possibility that these rates may be subject to further adjustments pending the availability of additional relevant information.