The European Union to Lower Proposed Tariffs on Electric Vehicles
The European Union is set to decrease proposed tariffs on electric vehicles from Tesla and certain Chinese automakers following feedback from the automakers, as reported by Reuters.
An undisclosed source revealed to Reuters that Tesla EVs will now face a reduced tariff of 7.8%, down from the initial 9%. Similarly, Geely will see a decrease from 19.3% to 18.8%. These adjustments will be in addition to the EU’s standard 10% import duty for cars.
2024 MG Cyberster
However, not all automakers will benefit from the tariff reduction. China’s BYD will reportedly maintain a 17% tariff on its EVs, while SAIC, which did not participate in the feedback process, will face a peak rate of 35.3% for its vehicles, including the MG brand sold in Europe.
The EU initially announced the proposed tariff rates last month, allowing China and affected automakers to provide comments within 10 days. The European Commission considered this feedback in revising the rates. The revised tariffs are pending approval through a vote by the EU’s 27 member states and can be overturned if a qualified majority representing 65% of the EU population votes against them.
BYD Dolphin EV – Euro spec
Despite the tariff adjustments, the influx of Chinese EVs may continue, with BYD already selling its Dolphin compact hatchback for under $30,000 in some markets. Additionally, the BYD Seagull could be priced below $20,000 in certain regions.
In a similar vein, Canada recently imposed a 100% tariff on Chinese-made EVs, mirroring the stance taken by the U.S. under the Biden administration to restrict Chinese EV imports. The potential policy shift by presidential candidate Donald Trump could extend these tariffs to all vehicle types, regardless of their propulsion system.