European Commission Lowers Proposed Tariff on Chinese Tesla Cars

The European Commission has reduced the proposed tariff on Chinese-made Tesla cars to 9%, down from the previously planned 20.8%. This adjustment follows Tesla's request for a recalculation based on specific subsidies. The decision is part of a broader EU investigation into alleged Chinese subsidies on electric vehicles, which has sparked potential retaliation from Beijing.

The European Commission slashed its proposed tariff on imported Tesla cars built in China to 9%, a significant reduction from the original 20.8% detailed in July. This move comes amidst a significant European Union investigation into alleged Chinese subsidies on electric vehicles, which has drawn threats of retaliatory measures from Beijing.

According to the Commission, Tesla had requested a recalibration of its tariff, arguing that it should be assessed based on the precise subsidies the company had received. Tuesday's decision reflects this adjustment.

The investigation marks the highest profile EU probe into Chinese subsidies, as the bloc scrutinizes the financial support Chinese manufacturers receive, potentially distorting the market.

(With inputs from agencies.)