The European Union (EU) will reduce proposed additional customs duties on Tesla and other electric vehicles made in China, a source familiar with the matter said on Tuesday, September 10.
The surcharges on Chinese imports imposed on Tesla will thus increase from 9% to 7.8% and those imposed on Chinese manufacturer Geely will be reduced to 18.8%, compared with 19.3% previously, the source said.
The move comes after taking into account information provided by the companies, the source said, adding that SAIC (brands MG and Maxus) would be subject to a maximum rate of 35.3%, down from 36.3% so far, and other companies that are not cooperating with the EU investigation. No changes have been made to the 17% tariff proposed for Chinese giant BYD.
The European Commission, which oversees EU trade policy, believes that these additional customs duties on electric vehicles imported from China
are needed to level the playing field and combat Chinese subsidies seen as unfair. These customs duties are in addition to the 10% standard imposed by the EU on car imports.
The EU declined to comment, while Tesla did not immediately respond to a Reuters request for comment.
A vote by member states is expected
The European executive had set Last month, Chinese imports of Tesla cars were subject to a 9% surcharge.compared to 20.8% initially. Only the Tesla Model 3 is affected because the Model Y SUV is produced at the factory in Berlin, Germany. The highest surcharge among companies cooperating in the EU investigation is said to be 20.7%.
The tariff is expected to apply to some Chinese producers such as Chery, Great Wall Motor Co and Nio, as well as a number of joint ventures between Chinese companies and European carmakers.
China and the companies concerned have had ten days to submit their comments, which the Commission took into account in revising its proposal, which must still be submitted to a vote by the EU27. They will be implemented unless a qualified majority of 15 EU members representing 65% of the EU population opposes them.
Visiting China on Tuesday, Spanish Prime Minister Pedro Sánchez called in Shanghai for “a negotiated solution (…) within the framework of the World Trade Organization” (WTO) to resolve trade tensions between China and the European Union.
Source: BFM TV
