In a bid to counteract subsidies provided by Beijing to the electric vehicle industry, the European Union (EU) announced plans to implement a 9% tariff on Teslas imported from China. This decision comes as the EU moves forward with definitive tariffs on electric vehicles shipped from China, impacting automakers across the board.
The revised proposed tariffs will see MG maker SAIC Motor Corp., Volvo Car AB parent Geely, and BYD Co. facing additional duties of 36.3%, 19.3%, and 17%, respectively, slightly lower than originally projected. Notably, Tesla Inc. stands to benefit with a 9% tariff, attributed in part to Beijing's seemingly reduced subsidies to foreign-owned companies.
Tesla's individual assessment request was granted earlier in the year, leading EU officials to visit Tesla's plants and ultimately decide on the lower tariff rate. However, other non-cooperating companies from China may face duties of up to 36.3%, on top of existing 10% duties, based on the findings of the EU probe.
The deadline for comments and hearings on the proposal is set for August 30, with a binding vote from member states expected by November. The EU remains open to alternative solutions in talks with China, emphasizing compliance with WTO rules and addressing subsidy issues.
Despite pushback from China and some EU member states, the EU intends to finalize the tariffs by October 30, potentially extending them after review. The bloc will not collect retroactive guarantees required for provisional tariffs, and tariff rates remain subject to change before implementation.