Revised Tariff Proposals: Tesla and Volvo Less Affected than Other Car Manufacturers
The latest EU proposal for tariffs on electric cars made in China proposes a tariff of 'only' 9% for Tesla cars, while Volvo's Chinese-made vehicles, owned by Geely, face a 19.3% levy. However, this proposal is not yet finalized and may be adjusted before its final adoption in November.
Other car manufacturers, which have cooperated with the European Commission, face a higher tariff of 21.3%. At the same time, cars from companies that have not cooperated with the Commission will face a significantly higher tariff of 36.3%. These new duties are in addition to the already existing 10% duty that applies to all Chinese car imports.
One of the reasons why Tesla and Volvo are subject to lower tariffs than their competitors is that China's government subsidies are considered less generous for foreign car brands that have production in the country. This creates a certain advantage for these brands over those that rely entirely on Chinese subsidies.
The background to this proposal is the EU
concerns that Chinese electric car manufacturers benefit from government subsidies, which are considered to distort competition in the European market. The European Commission has therefore proposed these tariffs as a way to level the playing field and protect the European car industry.
