The EU appears to be reducing customs duties on Tesla and other electric vehicles of Chinese origin.
According to an inside source, the EU Commission is thought to be considering reducing slightly the controversial anti-dumping taxes on electric cars manufactured in China by Tesla and several Chinese manufacturers. The additional levy for Tesla will allegedly be decreased to 7.8% from the previous 9%, as reported by someone with knowledge of the situation to Reuters.
In regards to Geely, the revised rate will be 18.8% instead of 19.3%. However, the 17% surcharge for competitor BYD will still be enforced. A peak rate of 35.3% will be imposed on SAIC and other companies that do not collaborate with the EU, the insider disclosed further.
These penalties are in addition to the standard EU import duties of 10% for vehicles. The EU Commission, which employed these penalties due to significant subsidies, opted to remain silent on the matter. Tesla initially declined to comment.
Last month, the EU unveiled its initial proposal for final tariffs. China and the affected companies were given a 10-day window to submit their comments, which the Commission considered in determining the revised tariff rates. The 27 EU member states must vote on the final tariffs. They will be implemented unless a qualified majority of 15 EU member states, representing 65% of the EU population, votes against it. This is a high threshold that is seldom achieved.
These tariffs also impact the electric car production of European manufacturers in China, which is the primary sales market for German carmakers. They are also worried about the possibility of China retaliating with increased tariffs.
Despite the revised rates, the controversy surrounding the anti-dumping taxes on Chinese electric car manufacturers persists. Some argue that the reduced taxes are still too high, potentially hindering the competitiveness of these companies in the EU market.
The controversial tax reduction strategy by the EU Commission has raised questions about its impact on the balance of trade and fair competition between international electric car manufacturers.
