The European Union reduces taxes for many electric car models manufactured in China

Electric cars produced by Tesla in China have had their import tariffs to the EU reduced by half compared to the previously announced level in July (Image: Tesla).

Initially, the EU imposed a tariff of 20.8% on Tesla's electric cars produced in China, but now, after reviewing a complaint filed by the American brand, the EU has reduced the tariff to only 9%.

Tesla requested a reassessment after the tariffs were announced in July. Subsequently, the EU determined that Tesla receives less support from the Chinese government compared to some other car manufacturers producing vehicles in China, so they agreed to reduce the tariff for Tesla.

The EU only reduced, not completely removed, the additional tariffs on electric cars produced by Tesla in China, as they found that Tesla buys batteries at a lower price than the market price. This is one of the ways that the EU believes many car manufacturers receive support from the Chinese government, creating unfair competitive advantages with vehicles produced in other countries.

The EU report lists various ways in which car manufacturers with plants in China can receive support from their respective governments, including cheap land, subsidies, and loans at preferential interest rates.

Tesla is not the only car manufacturer benefiting from this tariff change by the EU.

The new electric car model from Mini (Germany) was initially subjected to a tariff of 37.6%, which is the maximum rate applied to car manufacturers that the EU believes are not cooperating with the investigators. But after a review by the EU, Mini will be subject to a lower tariff - 21.3%.

The Cupra Tavascan model has also had its tariff reduced from 37.6% to 21.3%, although according to Auto News, the Seat brand said they wanted a larger tariff reduction.

Some Chinese brands have also had their tariffs reduced, but by very little. Specifically, the tariff rate applied to BYD's electric cars imported into the EU has been reduced from 17.4% to 17%, Geely's from 19.9% to 19.3%, and SAIC's from 37.6% to 36.6%.