Elon Musk, Chief Executive Officer of SpaceX and Tesla and owner of X speaks during the Milken Conference 2024 Global Conference Session at The Beverly Hilton in Beverly Hills, California, USA, May 6, 2024.
David Swanson Reuters
Tesla could be subject to special taxes on cars manufactured in China and imported into Europe as part of the European Union’s decision to raise tariffs on Chinese electric vehicles.
On Wednesday, the European Commission, the EU’s executive arm, imposed higher tariffs on Chinese EV makers of up to 38%. These temporary duties will be implemented from July 4 if the EU does not reach a solution with the Chinese authorities. Four months after this, the so-called “definitive measures” were taken.
At this stage, Tesla “may receive individually calculated duty rates,” the Commission said.
Valdis Dombrovskis, the EU Trade Commissioner, told CNBC on Wednesday that Tesla is making a case for lower tariffs, which the commission is looking into.
“We can also look deeper into the specific situation of Tesla and the subsidies (that) Tesla has specifically received in China, and may lead to different levels of countervailing duties,” he said.
Shanghai, China is home to one of the largest Tesla Gigafactories. By 2023, Tesla will ship 947,000 vehicles from its Shanghai factory with 600,000 going to the Chinese market and the rest being exported, according to Chinese state media.
The European move follows the US where President Joe Biden’s administration last month slapped 100% tariffs on Chinese electric cars.
Tesla CEO Elon Musk recently addressed the US tariffs.
“Neither Tesla nor I asked for that rate,” Musk said in May.
“Tesla competes well in the market in China with no tariffs and no deferential support,” added Musk. “I’m in favor of no tariffs.”
