News - EU cuts tariff on China-made Tesla cars

The European Union (EU) has slashed an additional tariff on Tesla electric vehicles (EVs) made in China to 9%, down from the previously planned 20.8%, reports Euronews. This new rate is significantly lower than the range of 17% to 36.3% imposed on other Chinese EV manufacturers, which could potentially boost Tesla's sales in the region. However, the plan is subject to approval by a majority of the 27 EU member states before October 31. If approved, the new tariffs will remain in effect for the next five years. The decision followed Tesla's request for an individual assessment regarding the European Commission's tariffs on China-made EVs, which were outlined in July. The EU believes that Beijing's subsidies to the industry are "unfair" and would cause "material injury" to the EU's car manufacturers. After conducting its investigation, the Commission concluded that Tesla received fewer subsidies from the Chinese government. The US-based carmaker primarily benefited from below-market value battery supplies, as well as advantageous land use and income-tax reductions for exporters in China. The additional tariff imposed is in addition to the existing 10% duty applied to China's EV imports.