German Manager Magazine: Tesla: Electric car maker is likely to raise price for Model 3 due to China tariffs003382

The US electric car manufacturer Tesla raises due to the threat of import tariffs on Chinese Electric cars in the European Union probably the price for his Model 3. “We assume that we will have to increase the prices for the Model 3 from July 1, 2024,” the company wrote on its homepage on Thursday. “The reason for this is additional import duties that will probably apply to everyone China Electric vehicles manufactured and sold in the EU will be charged.” Tesla did not initially provide details about how much the price should be increased. Tesla manufactures the vehicles for the European market at its factory in Shanghai.

The EU Commission announced on Wednesday that Provisional tariffs of up to 38.1 percent from July to be collected additionally. The new tariffs will apply from July 4th unless there is an agreement with China by then. The western car manufacturers with their imports from China like Tesla and BMW should be treated as cooperating companies. An additional duty of 21 percent applies to these. Companies that do not cooperate must calculate with the surcharge of 38.1 percent. Tesla was the only company to apply for an individual tariff. The The most important questions and answers about the punitive tariffs can be found here.

China wants to take legal action against punitive tariffs at the WTO

China is threatening the EU with a lawsuit at the World Trade Organization (WTO) because of the punitive tariffs being considered. “China reserves the right to file a complaint with the World Trade Organization and will take all necessary measures to resolutely defend the legitimate rights and interests of Chinese companies,” He Yadong, a spokesman for China’s Ministry of Commerce, said on Thursday.

The tariffs would not only disrupt “mutually beneficial cooperation” in new energy vehicles, but also distort the global automotive industry and supply chain. The European action is suspected of violating WTO rules and is a “blatant act of trade protectionism.”

Go to Source