The European Union plans to implement a 9% tariff on Tesla (NASDAQ:) cars imported from China as its China electric vehicle probe advances, it was revealed on Tuesday.
The tariff is lower than the 20.8% it had indicated in July. In addition, the EU said some Chinese companies in joint ventures with EU automakers could receive lower planned tariffs on Chinese-made electric vehicles.
It follows the bloc’s notification to automakers of its draft decision to impose definitive tariffs on electric vehicles shipped from the country.
The EU is taking this action to counter subsidies provided to the Chinese EV industry by Beijing.
While the proposed tariffs on other Chinese EV manufacturers are higher, Tesla’s lower rate reflects the EU’s assessment that Beijing provided fewer subsidies to foreign-owned companies.
Tesla previously requested a recalculation of the rate. They asked for it to be based on the specific subsidies the company had received.
However, the bloc still found that Tesla benefited from various incentives, including below-market battery prices, land-use rights, and tax reductions.
The EU will now consult with manufacturers before a member state vote on the tariffs, which are scheduled to take effect by November.
China has opposed the EU’s measures, labeling them protectionist and threatening retaliation.
Despite opposition from some member states, including Germany and Hungary, the tariffs are likely to proceed unless a blocking majority is formed.
