EU cuts planned tariff on China-made Tesla vehicles: What does it mean for prices?
The European Commission has significantly reduced the import duty on Tesla vehicles manufactured in China, potentially paving the way for a surge in sales across the region. Chinese EV exports to the EU experienced a sharp decline in response to the proposed tariffs.
Transcript
00:00The European Commission has decided to only impose a 9 percent tariff on Chinese-made
00:07Tesla electric vehicles imported into the EU. This is significantly less than the original
00:1320.8 percent tariff Brussels proposed in July, which was aimed at leveling out the domestic
00:20electric vehicle industry that favored Chinese products due to generous Beijing subsidies.
00:26Tesla's specific tariffs were handed down once the U.S.-based company, headed up by
00:31Elon Musk, requested an individual assessment. According to the European Commission's decision,
00:38it believes that Beijing's, quote, unfair subsidies afforded to Chinese companies do
00:43not totally extend to Tesla's EVs. The EU also revised duties on other Chinese carmakers,
00:51such as Geely and BYD. But many heavy tariffs remain for China's EV manufacturers, with
00:57the Chinese Chamber of Commerce to the EU blasting the decision for being, quote, protectionist.
01:03If approved by member states, the tariffs would last for five years.