EU to cut proposed tariffs on Tesla, other EVs from China: Report

The European Union will reduce its proposed tariffs on Tesla and slightly cut rates for other EVs from China, after considering submissions by the companies, a person in the know told Reuters. 

The newswire learnt from the source that Tesla's proposed tariff rate will reduce from 9% to 7.8%. 

BYD's 17% tariff remains unchanged. whereas for Geely, the improvised rate is 18.8% from 19.3% earlier, the Reuters noted. 

The person in the know further told Reuters that a 35.3% peak rate would be applicable to SAIC and other firms not collaborating with the EU investigation. 

These tariffs come on top of European Union's standard 10% import duty for cars, the newswire noted. 

The EU, which is scrutinising an anti subsidy investigation into electric vehicles manufactured in China, refrained from offering clarification. The newswire also could not elicit a timely response from Tesla. 

In August earlier this year, the EU laid ground for its initial proposal for final duties, arriving at a 9% rate for Tesla electric vehicles, a steep drop from the higher duty that will be applicable to all cooperating companies, now set at 20.7%, Reuters noted. 

This tariff will be applicable to some Chinese producers of the likes of Chery, Great Wall Motor Co and NIO, besides a clutch of JVs  between Chinese companies and EU automakers, the newswire noted. 

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, Reuters further noted. 

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% of the EU population vote against, the newswire said.