11:06 AM EDT, 06/12/2024 (MT Newswires) -- (Updates with information about special duties for Tesla in the fourth and fifth paragraph.)

The European Commission said Wednesday that it plans to impose provisional duties of up to 38.1% on some imported Chinese electric vehicles, in addition to the ordinary import duty of 10% levied on imports of battery EVs.

The regulator said the provisional duties are the result of anti-subsidy investigation that revealed that the entire Chinese battery electric vehicles value chain is "heavily subsidised in China" and that imports of Chinese EVs "presented a threat of clearly foreseeable and imminent injury to EU industry."

The commission said it plans to apply different tariff rates on each carmaker, with BYD vehicles being subject to a 17.4% rate. Carmakers that cooperated with the EU investigation but were not individually sampled will face an average rate of 21%. Those who did not cooperate will face a 38% rate on the top of the existing 10% duty.

Tesla (TSLA) may face an "individually calculated" tariff rate on its cars made in China and imported to Europe as the commission is examining the automaker's case for lower tariff rates, CNBC reported Wednesday, citing Valdis Dombrovskis, the EU commissioner for trade.

"We can also look more in depth in a specific situation of Tesla and subsidies [that] Tesla has specifically received in China, and that may lead indeed to different level of countervailing duties," Dombrovskis reportedly told CNBC.

The commission said it had already notified the carmakers and the Chinese government and will publish in the Official Journal a regulation explaining "in detail the provisional findings which led to this level of duties" by July 4 at the latest.

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