The European Union has sharply reduced the additional tariffs it planned to impose on Tesla’s electric vehicles from China.
The new tariff rate for Tesla has been set at 9%, a significant decrease from the previously proposed 20.8%, as per Reuters.
The European Commission’s revised proposal comes after further scrutiny requested by Tesla.
The adjustment also affects other Chinese electric vehicle manufacturers, some of which may see reduced tariffs if they are in joint ventures with EU companies.
The EU's standard 10% duty on car imports remains in place, aimed at ensuring fair competition and countering perceived subsidies from China.
Meanwhile,China has voiced strong objections to the findings, calling them unfair and demanding a more balanced approach.
The EU's ongoing investigation into Chinese EV subsidies will conclude in about two months, with final tariffs pending approval by the 27 EU member states.
Comments on the proposed measures can be submitted until August 30. To block the tariffs, a significant majority of EU countries must vote against them, a high bar to clear.
