The EU plans to introduce a nine percent tariff on Tesla vehicles produced in China

BRUSSELS – Representatives of the European Union (EU) announced that they plan to introduce a nine percent tariff on Tesla electric vehicles (EV) manufactured in China. For Tesla, this is relatively welcome news as it will pay a lower tariff compared to other car manufacturers in China, reports Bloomberg.

EU officials believe that Beijing gives fewer subsidies to foreign-owned companies such as Tesla, so this situation has resulted in lower tariffs for the American EV manufacturer. The proposed EU tariffs have been slightly revised compared to the previous proposal, so cars from the Chinese company Bi-Vaj-Di (BYD) will be subject to an additional 17 percent tariff in the future, Gili will pay 19.3 percent, and SAIC 36.3 percent. Other Chinese car manufacturers will pay tariffs of 21.3 percent, while companies that did not cooperate in the EU investigation of subsidies can expect a tariff of 36.3 percent. These tariffs could be imposed on the existing 10 percent import tariff on Chinese EVs.

Brussels and Beijing have held talks in recent months to explore whether an alternative solution to the introduction of tariffs can be found. The EU said that any solution must comply with World Trade Organization rules and address the core issue of subsidies. China claims that the EU tariffs are protectionist and has threatened to retaliate with its own measures in other sectors. If a qualified majority of EU member states do not block the adoption of the tariffs in a binding vote, the European Commission will publish the final regulation on tariffs by October 30. In that case, tariffs on the import of Chinese EVs to the European Union would remain in effect for the next five years and could be extended after that period.(August 20)