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EU to trim proposed tariffs on Tesla, other EVs from China
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EU to trim proposed tariffs on Tesla, other EVs from China
Sep 11, 2024 12:18 AM

BRUSSELS, Sept 10 (Reuters) - The European Union will

lower proposed final tariffs on Tesla and slightly trim

rates for other electric vehicles from China after taking into

account submissions by the companies, a source familiar with the

matter said on Tuesday.

Tesla's proposed tariff rate will drop to 7.8%, from 9%, the

source said. For BYD, there was no change to its 17% tariff. For

Geely, the new rate would be 18.8% from a previous 19.3%. A peak

rate of 35.3% would apply to SAIC and other companies not

cooperating with EU investigation, the source said.

These tariffs are on top of the EU's standard 10% import

duty for cars.

The European Commission, which is conducting the

anti-subsidy investigation into EVs made in China, declined to

comment. Tesla did not immediately respond to a Reuters' request

for comment.

Last month, the EU set out its initial proposal for final

duties, establishing a separate rate of 9% for Tesla EVs, a

sharp reduction from the higher duty that will apply to all

cooperating companies - now set at 20.7%.

This tariff is due to apply to certain Chinese producers

such as Chery, Great Wall Motor Co and NIO and a number of joint

ventures between Chinese companies and EU automakers.

China and affected companies were given 10 days to submit

their comments and the Commission has taken these into account

to establish revised tariff rates.

The proposed final duties will be subject to a vote by the

EU's 27 states. They will be implemented unless a qualified

majority of 15 EU members representing 65% of the EU population

vote against.

It is a high hurdle that is rarely reached, although this is

a politically charged file.

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