"EU Reduces Tariff on Tesla Model 3 Imports from China to 9%; BMW, VW Gain"

The European Union has reduced tariffs on Tesla Model 3 sedans imported from China to 9%, offering significant relief to the automaker. This tariff reduction also benefits other car manufacturers like BMW and Volkswagen, who are similarly importing vehicles from China. The move is expected to boost the competitiveness of these brands in the European market by lowering import costs and making their vehicles more affordable.

Extra tariffs on major Chinese exporters to Europe, such as BYD, Geely, and SAIC, were also reduced.

The European Commission has reduced additional tariffs on various Chinese electric vehicles (EVs) imported into Europe. This includes a cut to 9% for Tesla Model 3 sedans produced in Shanghai, down from the previously proposed 20.8%. Other major Chinese exporters like BYD, Geely, and SAIC will see their tariffs lowered to 17%, 19%, and 36.3%, respectively. BMW and VW Group also benefit from reduced tariffs on their EVs, including the electric Mini and Cupra Tavascan.

The adjustments are part of the EU's response to subsidies provided by Beijing to its EV industry, which it claims harm European automakers. The tariffs, which are in addition to the standard 10% duty on Chinese auto exports, aim to counteract unfair competitive advantages. Companies like Dongfeng Motor Group and Nio, which cooperated with the EU investigation, will face a 21.3% tariff, while non-cooperating firms will see higher duties.

BMW has welcomed the new rates for its Spotlight Automotive venture with Great Wall Motors, and Seat is negotiating to further reduce the tariff on the Tavascan. No retroactive duties will be imposed. The Commission's decision follows feedback from automakers and will be finalized by October 30, pending a vote by EU member states. The new tariffs are expected to reduce Chinese auto imports by about 25%, affecting market dynamics and potentially leading to trade tensions. China's commerce ministry has expressed strong opposition to the findings, accusing the EU of unilateral decision-making.

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Source: autonews‍