EU Reduces Tariffs on China-Built Tesla, BMW, and VW EVs
Revised Tariffs Benefit Tesla, BMW, and VW EVs
- The European Union has reduced some of the steep tariffs on EVs imported from China that it announced in
July. - Tesla’s tariff rate drops from 20.8% to 9%, and BMW’s electric Mini is now taxed at 21.3% instead of
37.6%. - VW EVs also benefit, as do electric cars made by some Chinese automakers, including SAIC and BYD.
Tesla’s activities in Europe received a profitability boost today after the European Union announced revisions to
the tariffs it began imposing in July on EVs arriving on the continent from China.
Tesla’s Tariff Reduced on Appeal
The EU’s initial report called for a 20.8 percent tariff on imported China-built Teslas, but that rate has now
been reduced to just 9 percent on appeal. The American automaker had asked for a recalculation following the
publication of the July report, and after ascertaining that Tesla received less state aid than some other firms
building cars in China, the EU agreed to reduce Tesla’s tariff.
However, the EU didn’t remove the duty altogether because it found that Tesla does receive batteries at below
market value, one of the ways Europe says some automakers receive help from the Chinese state that gives them an
unfair economic advantage against car firms building cars in other parts of the world. The EU’s report listed
multiple other ways in which China-based automakers can receive help, including cheap land, grants, and loans at
favorable rates.
BMW’s Electric Mini Also Benefits
Tesla wasn’t the only automaker to benefit from the EU’s revised tariff structure. BMW’s new electric Mini was
initially stung with a brutal 37.6 percent tariff, the maximum available and only applied to automakers who the
EU said refused to cooperate with investigators. But following a review, the Mini will now face a much smaller
21.3 percent levy.
Other Chinese Automakers See Tariff Reductions
Cupra’s Tavascan has also had its tariff reduced from 37.6 percent to 21.3 percent. Additionally, Chinese brands
BYD, Geely, and SAIC have seen small reductions in their tariff rates.