EU Revises Tariffs on Tesla and Geely EVs Imported from China
Good News for Tesla and Geely as Tariff Rates Are Cut
The European Union (EU) has made further revisions to its tariffs on electric vehicles (EVs) imported from China, providing some positive news for Tesla and Geely. The tariff rate for Tesla has been reduced from 9 percent to 7.8 percent, while Geely’s tariff has been lowered from 19.3 percent to 18.8 percent. However, Chinese officials are eager to engage in discussions with their European counterparts to find a mutually agreeable solution to the ongoing trade dispute.
Tesla’s Tariff Rate Reduced
Tesla’s tariff rate has undergone another reduction, this time from 9 percent to 7.8 percent. Previously, the tariff stood at 20.8 percent until the EU adjusted it last month following an appeal by Tesla. The EU determined that Tesla did not receive as much state assistance from China as other automakers, although it did benefit from discounted batteries. The reason for the latest tariff cut has not been specified, but it is based on new information provided by the companies involved.
Geely’s Tariff Rate Decreased
Geely, another Chinese automaker, has also seen a reduction in its tariff rate. Originally set at 19.9 percent, the tariff was lowered to 19.3 percent last month and has now been further reduced to 18.8 percent. On the other hand, BYD’s 17 percent tariff remains unchanged. Companies like SAIC, the owner of MG, which refused to cooperate with the investigation, face a 35.3 percent tariff, down from 36.6 percent. Chery and Nio, who did cooperate, will face 20.7 percent tariffs. These additional duties are in addition to the regular 10 percent tariff on imported cars, potentially impacting the profitability of automakers.
China Calls for Negotiations
Chinese officials have expressed their desire to engage in negotiations with EU officials to reach a mutually beneficial agreement. China’s Vice Commerce Minister Li Fei recently met with the European Commission’s director general to emphasize China’s willingness to find a solution that aligns with the interests of both parties and complies with WTO rules. The goal is to promote the healthy and stable development of China-EU economic and trade relations.
