The European Union announced on Tuesday a significant reduction in planned tariffs for Tesla vehicles imported from China, cutting the rate to 9% from the previously anticipated 20.8%. The decision marks a positive turn for Tesla as the company continues to expand its presence in the European market.
The EU had initially proposed higher tariffs on Chinese electric vehicle (EV) imports in response to what it described as “unfair subsidies” benefiting Chinese manufacturers, which the EU claimed posed a threat to European EV producers, reports CNBC. However, after reviewing feedback from interested parties, the EU Commission decided to adjust the proposed duties.
Tesla, which had requested a recalculation of the tariffs to better reflect the specific subsidies it receives in China, was granted a reduced individual duty rate by the EU. This move, seen as a win for Tesla, led to a rise in the company’s shares during U.S. morning trading.
Other Chinese EV manufacturers, such as BYD, Geely, and SAIC, also saw slight reductions in their tariff rates, though not as substantial as Tesla’s.