Tesla to get lower EU tariff on its Chinese-made EVs

Brussels (Reuters): Tesla is set to get a reduced tariff on its China-built cars exported to the European Union after the bloc's executive revised on Tuesday its proposed punitive duties on imports of Chinese-made electric vehicles.

The revisions are part of draft findings issued by the European Commission in the highest profile EU investigation of alleged Chinese subsidies, which has provoked threats of retaliation from Beijing.

The Commission, which oversees the bloc's trade policy, says the proposed tariffs are needed to level the playing field and counter what it says are unfair subsidies.

It set a new reduced rate of 9% for Tesla, lower than the 20.8% it had indicated in July, and said some Chinese companies in joint ventures with EU automakers may receive lower planned punitive duties on Chinese-made EV imports.

The tariffs are on top of the EU's standard 10% duty on car imports.

Tesla had requested a recalculation of its rate, to be based on the specific subsidies the company had received. The Commission said on Tuesday it had verified that the U.S. company received less subsidies from the Chinese government compared to the country's EV makers Brussels had investigated.

It said it still believed Chinese EV production had benefited from extensive subsidies and proposed final duties of up to 36.3%. That is slightly lower than the maximum provisional duty of 37.6% it set in July for companies that did not cooperate with the EU's anti-subsidy investigation.