EU to raise Tesla’s mid-range production tariff rate from 10% to 19%

Proposed Tariff on Chinese Electric Vehicles Confirmed… Increase from Current 10% to 27.0-46.3%
Likely to be Implemented Around November after EU Member States Vote,
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Large-scale electric vehicle charging facility in Shanghai
[Shanghai Kyodo=Yonhap News Agency file photo] A large-scale electric vehicle (EV) charging facility opened by U.S. Tesla in Shanghai, China on November 22.,
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, ‘(Brussels=Yonhap News) Reporter Jeong Bitna = The European Union (EU) is leaning towards raising tariffs on Tesla vehicles produced in China from 10% to 19% starting in November.’,
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, ‘ The EU executive commission notified the parties involved of the proposed tariff increase related to the ongoing anti-subsidy investigation on Chinese electric cars on the 20th local time and disclosed the finalized tariff draft.’,
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, ‘ EU officials explained, “Based on individual investigations at Tesla’s request, the counterbalance tariff rate reflecting the level of subsidies received by Tesla in China was set at 9 percentage points.”‘,
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, ‘ Currently, a flat 10% tariff is imposed on electric cars exported from China to the EU, including Tesla vehicles.’,
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, ‘ The finalized tariff draft released on this day is a follow-up measure based on additional investigations conducted after the preliminary investigation results announced in June.’,
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, ‘ After a 10-day consultation period, the finalized tariff draft will be published in the official journal on October 30 after a vote by 27 countries, to be implemented for 5 years.’,
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, ‘ The executive commission had initially decided to impose a provisional counterbalance tariff rate of 17.4-37.6 percentage points based on the preliminary investigation results. However, the finalized tariff draft revealed on this day was adjusted overall to 17.0-36.3 percentage points.’,
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, ‘ As a result, with the additional tariff, the final tariff rate for Chinese electric cars will increase to 27.0-46.3%.’,
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, ‘ EU officials stated, “Adjustments were made based on proven opinions submitted by interested parties following the announcement in July to correct technical errors.”‘,
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, ‘ They emphasized, “The executive commission is respecting all regulations and obligations, rigorously deriving investigation results based on facts and evidence.”‘,
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, ‘ For individual companies, the revised counterbalance tariff rate has slightly decreased for BYD from 17.4 to 17.0 percentage points, for Geely from 19.9 to 19.3 percentage points, and for SAIC from 37.6 to 36.3 percentage points.’,
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, ‘ The additional tariff rate for cooperating companies has been adjusted from an average of 20.8 percentage points to 21.3 percentage points, while non-cooperating companies have been slightly adjusted from 37.6 to 36.3 percentage points.’,
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, ‘ They also announced that the provisional application of the counterbalance tariff, which has been applied since the announcement of the preliminary investigation results, will not be enforced due to legal requirements for retroactive application not being met.’,
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, ‘ The actual tariff collection will take place after the finalized tariff is implemented following the vote by 27 countries on October 30.’,
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, ‘ Some analysts speculate that this decision takes into account China’s strong resistance, such as filing a complaint with the World Trade Organization (WTO) if the high tariffs on domestically produced electric vehicles by the EU are deemed unfair.’,
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, ‘ EU officials left room for potential adjustments to the final tariff rate, stating that they are “continuously in discussions with China.”‘,
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