European Union proposes reduced tariffs on Tesla, Chinese-made EVs

Aug. 20 (UPI) -- The European Union on Tuesday introduced a draft proposal that would reduce the anticipated tariffs on several Chinese electric vehicle firms along with Tesla vehicles made in China.

In a statement, the EU said the planned tariff on Tesla vehicles imported from China would be downsized from 20.8% to 9%.

The alliance had said in June that "unfair subsidies" provided to EVs made in China was an economic threat to electric vehicles made in Europe.

"The aim is to allow interested parties to comment, as was also done at provisional stage," the European Union said in a statement. "Once the commission has analyzed all comments by interested parties and member states have given their opinion, the final decision will be published in the Office of Journal of the European Union."

The European Union said several Chinese exporters with "certain joint ventures" with European producers could also be given lower tariff rates as well. For example, BYD, an EV company supported by U.S. billionaire Warren Buffett, would receive a tariff of 17%, down slightly from the original proposal of 17.4%.

EV-producing companies who cooperate with the EU investigation could face tariffs of 21.3% while those not cooperating could be slammed with tariffs up to 36.3%.