Tesla, BYD benefit as EU cuts planned tariffs on Chinese EV imports

Electric cars made in China are getting a break after the EU cut proposed tariff rates on EV imports. Tesla and BYD are among the automakers set to benefit from the adjusted EU tariffs. Here’s a look at the new rates.

How the new EU tariffs impact Tesla, BYD, and others

On Monday, the European Commission revealed new tariff rates on Chinese-made EVs imported into the country.

As part of its ongoing anti-subsidy investigation, the EU cut tariff rates on Chinese EV imports to between 9% and 36.3%. That’s down from the initial 17.4% to 38.1% proposed in June.

Tesla is the biggest winner, with its duty rate slashed from 20.8% to just 9%. That’s on top of the current 10% rate on car imports. Tesl requested a new rate based on the amount of subsidies it received.

China’s leading EV maker, BYD, saw a slight rate drop from 17.4% to 17%. Volvo and Polestar owner Geely got a rate cut from 20% to 19.3%, while SAIC had the highest at 36.3%, down from 38.1%. All other cooperating companies will get a 21.3% tariff rate, up from 21% in June.

Automakers will be set at the highest 36.3% rate if they do not cooperate with the investigation.

The EU said the new rates were part of the ongoing investigation and are subject to change. Once a final decision has been made, it will be published in the Official Journal of the European Union.

Auto brands involved can request hearings and have ten days to provide feedback. After that, the Commission will present its findings to Member States, which will vote to put them into effect. The Commission will publish its findings by October 30, 2024.