The European Commission has reduced its proposed tariff on Tesla vehicles produced in China to 9%, down from the previously indicated 20.8%. This decision comes as part of the EU’s ongoing anti-subsidy investigation into Chinese electric vehicle (EV) producers, which has seen significant reactions from Beijing.
The Commission’s draft findings, revealed on Tuesday, also suggest that some Chinese firms in joint ventures with European automakers might benefit from lower punitive duties than initially planned. The revised tariff for Tesla is lower than the provisional duty of 37.6% set in July for companies that did not cooperate with the investigation.
Tesla, recognised as a cooperating company in the probe, had requested a recalculation of its rate based on specific subsidies received. Following an investigation that included visits to Tesla facilities in China, the Commission determined that Tesla receives less subsidy compared to other Chinese EV manufacturers examined.
While the revised tariff for Tesla is set at 9%, the Commission proposes final duties of up to 36.3% for other Chinese EV producers, slightly below the maximum provisional rate. These tariffs are additional to the EU’s standard 10% duty on car imports.
The Commission also noted that Chinese companies involved in joint ventures with EU producers might be eligible for the lower tariff rates planned for their associated Chinese firms, rather than automatically receiving the highest duty.
The decision reflects ongoing efforts by the EU to address what it considers unfair subsidies in the global automotive market.
