EU Slashing Tariffs on China-Built Teslas

Don’t look now, but the EU has seemingly decided that some EVs built in China are a lot more palatable to its economic climate than others.

According to a Reuters  report from Brussels, executive members of the European Union are set to reduce tariffs on Tesla vehicles built in China and shipped to the EU. Changes to the punitive duties were drafted today and are apparently part of a broader look at trade issues. A new rate of 9 percent has been set for Tesla, less than half the previous target of 20.8 percent as indicated just last month. If memory serves, the EU slaps a 10 percent duty on vehicle imports anyway, though it is not immediately clear if these two taxes are stackable or individually calculated based on a car’s value. People smarter than I are free to chime in.

Those with tall hats at the EU take a different approach to tariffs on cars built in China, such as possibly considering a Chinese company’s level of joint venture with a European automaker. They also go ahead and look at the amount of government subsidy from which particular Chinese EV production outfit has benefitted, partly explaining why BYD is under a suggested 17.0 percent tariff and Geely is dealing with a 19.3 percent tax. I’m sure the formulas for all these calculations are even more complicated than figuring out who owes what for take-out pizza on a Friday night.

All this is still subject to a vote, of course, one which is apparently just as complicated as the calculation itself. After canvassing EU members in a so-called advisory vote about a month ago, it was found that a dozen members voted in support of the tariffs, four voted against, and 11 abstained. If officially passed, the duties would have to be in place by October 30 and are typically enforced for five years.