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The European Commission is reducing the proposed tariff on the American automaker’s electric vehicles imported from China to 9%, less than that of its Chinese peers.
By Melissa Eddy and Jenny Gross
Melissa Eddy covers the automotive industry in Europe and reports from Berlin. Jenny Gross covers the European Commission and reports from Brussels.
The European Union is proposing to impose additional tariffs of 9% on Tesla for its cars imported from China, while other automakers face tariffs of up to 36. 3%, as part of European automakers’ efforts against unfair competition.
The updated price lists, announced Tuesday in Brussels, would constitute a significant boost for large corporations making electric cars in China and aim to improve the situation for Chinese electric carmakers, many of which benefit from Beijing’s subsidies. The final price lists will be in addition to the 10% already charged for electric cars produced in China.
The European Union opened an investigation into Chinese automakers in October. Officials said they cut Tesla’s tax rate from the proposed 21% because the company did not take advantage of the same Chinese government subsidies as major Chinese automakers. Tesla did not respond to a request for comment.
Chinese automakers’ price lists, which would come into effect for five years, have declined since an initial proposal in June, ranging from 17% for China’s largest EV producer, BYD, to 36. 3% for SAIC Motor, the state-owned company. Geely Auto, Volvo Car’s parent company, faces a rate of 19. 3 percent.
Companies that cooperated with the investigation, including German carmakers BMW, Mercedes and Volkswagen, face price lists of 21. 3% on cars they produce in China. Unlike Tesla, which has its own independent production in Shanghai, German automakers participate in joint ventures with Chinese automakers. Since Volkswagen also has an entity with SAIC, some of its cars will be subject to the higher price lists.
Compared to the 100 percent price lists imposed by Biden’s management on Chinese electric cars in May, the European proposals reflect what experts see as an industry preference with China, while protecting domestic production. Since the first price lists were announced, several Chinese automakers have announced plans to move production to Europe.
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