EU Cuts Tariff on Chinese-Built Tesla Cars Amid Anti-Subsidy Probe

The European Commission has reduced its proposed tariff on Tesla cars imported from China, while maintaining other duties on Chinese-made electric vehicles. Following an investigation, Tesla's tariff was lowered to 9% from an initially proposed 20.8%. The Commission found that Tesla received fewer subsidies from China compared to other manufacturers.

The European Commission cut on Tuesday its proposed tariff on imports of Tesla cars built in China, while maintaining other planned duties on Chinese-made electric vehicles.

In the EU's highest-profile probe of alleged Chinese subsidies, the Commission issued draft findings of its anti-subsidy investigation, prompting threats of retaliation from Beijing. The new reduced tariff rate for Tesla is set at 9%, down from the 20.8% initially indicated in July.

Tesla had sought a recalculation of its tariff based on specific subsidies received, according to the Commission. The EU executive maintained that Chinese EV production benefits from extensive subsidies, proposing final duties of up to 36.3%. This is slightly lower than the maximum provisional duty of 37.6% set in July for companies not cooperating with the EU's probe.

Tesla was among the companies that cooperated with the EU investigation. The Commission said it conducted a thorough investigation, including sending a team to Tesla facilities in China to verify the subsidies the firm had received.

A Commission official noted that Brussels concluded Tesla receives fewer subsidies from China compared to other investigated Chinese EV producers.

(With inputs from agencies.)