BRUSSELS ― The European Union will lower proposed final tariffs on Tesla and slightly trim rates for other electric vehicles (EVs) from China after taking into account submissions by the companies, a source familiar with the matter said on Tuesday.
Tesla’s proposed tariff rate will drop to 7.8 percent, from 9 percent, the source said. For BYD, there was no change to its 17-percent tariff. For Geely, the new rate would be 18.8 percent from a previous 19.3 percent. A peak rate of 35.3 percent would apply to SAIC and other companies not cooperating with EU investigation, the source said.
These tariffs are on top of the EU’s standard 10-percent import duty for cars.
The European Commission, which is conducting the anti-subsidy investigation into EVs made in China, declined to comment. Tesla did not immediately respond to a Reuters’ request for comment.
Last month, the EU set out its initial proposal for final duties, establishing a separate rate of 9 percent for Tesla EVs, a sharp reduction from the higher duty that will apply to all cooperating companies ― now set at 20.7 percent.
This tariff is due to apply to certain Chinese producers such as Chery, Great Wall Motor Co. and NIO, and a number of joint ventures between Chinese companies and EU automakers.
China and affected companies were given 10 days to submit their comments, and the commission has taken these into account to establish revised tariff rates.
The proposed final duties will be subject to a vote by the EU’s 27 states. They will be implemented unless a qualified majority of 15 EU members representing 65 percent of the EU population vote against.
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