After the individual audit of the car manufacturer, the EU Commission Tesla the additional tariff on its electric car imports China reduced to 9 percent. According to a preliminary decision by the authority in July, it should be 20.8 percent in addition to the previous standard rate of 10 percent.
In addition, the EU will not impose additional temporary tariffs on Chinese electric cars. It was actually intended that in certain cases high countervailing duties of up to 37.6 percent should be paid retroactively. As the commission has now announced
, but the legal requirements for a retroactive levy of customs duties would not be met.
At the beginning of July she had EU imposed provisional punitive tariffs of between 17.4 and 37.6 percent. The EU Commission reiterated that it is convinced that electric car production in China is extensively subsidized. This endangers European car manufacturers and their conversion to electromobility. According to EU estimates, the market share of Chinese brands in Europe rose from less than 1 percent in 2019 to 8 percent and could reach 15 percent next year. Prices are usually 20 percent lower than models manufactured in the EU. Beijing sharply criticized the tariffs.
Tesla had requested a recalculation of the duty, which is now based on the specific subsidies received, the commission said on Tuesday. Officials checked the information on site. Tesla produces the Model 3 inexpensively in China and imports it to Europe.
BYD, Geely and SAIC also have to pay less
The authority also announced that the tariff rates had been slightly adjusted. In most cases they have been lowered slightly. Also the Tesla rival BYD, the Mercedes partner and smart producer Geely and the state car manufacturer SAIC, which is affiliated with VW, have to add a few tenths of a percent less according to the new calculation. A provisional punitive tariff of 17.4 percent should apply to BYD, 19.9 percent to Geely and 37.6 percent to SAIC. These rates have now been reduced to 17.0 percent, 19.3 percent and 36.3 percent.
Companies that cooperate with the EU will be charged 21.3 percent (originally 20.8), while uncooperative companies will be charged the maximum rate of 36.3 percent.
Also German manufacturers like BMW, Renault or the Volkswagensubsidiary Cupra are affected by the higher import tariffs. The tariffs have met with criticism, particularly in the German auto industry, which is heavily dependent on China, due to concerns about retaliatory tariffs on European exports. According to insiders, BMW and VW are also trying to achieve a lower additional tariff on the Mini and Cupra Tavascan models. At Cupra, 21.3 percent should now apply.
The EU’s investigation still takes about two months and the proposed tariffs could still change. Interested parties have until August 30 to submit their comments on the commission’s findings. The 27 EU member states must vote on the final tariffs. The Commission’s proposal will be implemented unless a qualified majority of 15 EU member states, representing 65 percent of the EU population, votes against it. This is a high hurdle that is rarely overcome. According to insiders, twelve EU members supported the provisional tariffs in an initial vote in July, four were against and eleven abstained, including Germany.