EU cuts tariffs on Tesla cars made in China to 9%

The European Commission announced on Tuesday that it has revised the tariff on Tesla vehicles produced in China, lowering it to 9 per cent from the initially proposed rate of 20.8 per cent.

This adjustment is part of the EU’s ongoing investigation into Chinese subsidies for electric vehicle (EV) manufacturers, which the bloc views as unfair trade practices.

The newly set 9 per cent tariff for Tesla cars made in China is notably lower than the rates imposed on other Chinese EV manufacturers, which range from 17 per cent to 36.3 per cent.

“The disclosure of draft definitive findings is an intermediate procedural step in a trade defence investigation. The aim is to give interested parties the opportunity to comment, as was also done at provisional stage. Once the Commission has analysed all comments by interested parties, and Member States have given their opinion, the final decision will be published in the Official Journal of the European Union.” the Commission statement read.

“The main novelties in the disclosure of the draft definitive findings – which are still subject to change based on substantiated comments by interested parties – are as follows:

“A slight adjustment of the proposed duty rates based on substantiated comments on the provisional measures received from interested parties, as well as the conclusion of investigative steps that had not yet been finalised at provisional stage:

• • BYD: 17,0 per cent
  • Geely: 19,3 per cent
  • SAIC: 36,3 per cent
  • Other cooperating companies: 21,3 per cent
  • All other non-cooperating companies: 36,3 per cent

The decision to grant an individual duty rate to Tesla as an exporter from China, established at 9 per cent, at this stage;”

This difference highlights Tesla’s distinct position, having received less state support compared to its Chinese competitors. The tariff changes are part of the EU’s broader effort to level the playing field for European automakers against subsidised imports.