ArrowArtboardCreated with Sketch.Title ChevronTitle ChevronIcon FacebookIcon LinkedinIcon Mail ContactPath LayerIcon MailPositive ArrowIcon Print
Electric vehicles

EU slashes planned tariff on Tesla's China-made EVs to 9%

New reduced rate is set lower than the 20.8% it had indicated in July

Tesla Model 3 vehicles at its factory in Shanghai, China.   © Reuters

BRUSSELS (Reuters) -- The European Commission on Tuesday cut its proposed tariff on imports of Tesla cars built in China, as it broadly maintained other planned punitive duties it set in July on Chinese-made electric vehicles.

In the highest profile European Union probe of alleged Chinese subsidies, the Commission issued draft definitive findings of its anti-subsidy investigation, which has provoked threats of retaliation from Beijing.

It set a new reduced tariff rate of 9% for Tesla, lower than the 20.8% it had indicated in July.

Tesla had requested a recalculation of its rate to be based on the specific subsidies the company had received, according to the Commission.

An executive from the EU said on Tuesday it still believed Chinese EV production had benefited from extensive subsidies and proposed final duties of up to 36.3%. That is slightly lower than the maximum provisional duty of 37.6% the Commission had set in July for companies that did not cooperate with the EU's anti-subsidy investigation.

Tesla was among the companies classed as cooperating with the EU investigation.

The Commission said it conducted an investigation, including sending a team to Tesla facilities in China, to verify what subsidies the company had received.

A Commission official said Brussels had concluded that Tesla receives less subsidies from China, compared to the Chinese EV producers Brussels had investigated.

Sponsored Content

About Sponsored Content This content was commissioned by Nikkei's Global Business Bureau.

Nikkei Asian Review, now known as Nikkei Asia, will be the voice of the Asian Century.

Celebrate our next chapter
Free access for everyone - Sep. 30

Find out more