EU Lowers Tariff on Tesla’s China-Built EVs in Revised Duties

The European Commission made changes to its duties on imports of Chinese-made electric vehicles.

It means Tesla is set to get a reduced tariff on its China-built cars exported to the European Union.

The revisions are part of draft findings issued by the bloc's authorities in the highest profile EU investigation of alleged Chinese subsidies.

The Commission says the proposed tariffs are needed to level the playing field and counter what it says are unfair subsidies.

It set a new reduced rate of 9% for Tesla, lower than the 20.8% it had indicated in July.

Tesla had requested a recalculation of its rate, to be based on the specific subsidies the company had received.

The Commission said it had verified the U.S. company received fewer subsidies from the Chinese government compared to the country's EV makers Brussels had investigated.

It said it still believed Chinese EV production had benefited from extensive subsidies and proposed final duties of up to 36.3%.

It is slightly lower than the maximum provisional duty of 37.6% it set in July for companies that did not cooperate with the EU's anti-subsidy investigation.

Tesla was among the companies classed as cooperating with the investigation.

The Commission said the three companies it had sampled would each receive slightly lower provisional duties.

Chinese electric vehicle giant BYD now has a rate of 17.0%. While Geely has 19.3% and SAIC is the highest at 36.3%.

The planned tariffs are a draft of what could become the EU's final measure on Chinese-made EVs once its investigation finishes in about two months.

The proposed final duties will be subject to a vote by the EU's 27 states. China has launched a challenge at the World Trade Organization.

The Commission has estimated Chinese brands' share of the EU market has risen to 8% from below 1% in 2019 and could reach 15% next year.