The European Union will lower proposed tariffs on electric vehicles from Tesla and certain Chinese automakers after hearing comments submitted by the automakers, Reuters reported Tuesday.
Citing an anonymous source familiar with the matter, Reuters reported that the proposed tariff for Tesla EVs will drop from 9% to 7.8%, while the tariff for Geely will decrease from 19.3% to 18.8%. All proposed tariffs are on top of the EU's standard 10% import duty for cars.
2024 MG Cyberster
Not all automakers will catch a break. China's BYD will reportedly see no change in a proposed 17% tariffs on its EVs. And automakers that did not participate in the process, such as SAIC, while sells the MG brand in Europe, will see a peak rate of 35.3% applied to their vehicles.
The EU announced the proposed tariff rates last month, giving China and the affected automakers 10 days to submit comments, which the European Commission reportedly took into account when devising the revised, lower rates. Those tariffs are still subject to approval by a vote of the EU's 27 member states, Reuters noted, and can be overwritten if a qualified majority of 15 member states representing 65% of the EU population votes against them.
BYD Dolphin EV - Euro spec
The implementation of EU tariff rules may be too late to stop an influx of Chinese EVs, though. BYD has already begun selling its Dolphin compact hatchback for less than $30,000 in some markets, and the BYD Seagull might be sold for less than $20,000 in certain markets.
Last month Canada's national government announced a 100% tariff on Chinese-made EVs, closely matching the policy adopted by the U.S. by the Biden administration earlier this year to keep Chinese EVs out. Presidential candidate Donald Trump has promised to take the 100% Chinese tariffs a step further—to all vehicle types, EV or not.
