EU to trim proposed tariffs on Tesla, other EVs from China

European Union will lower proposed final tariffs on Tesla and slightly trim rates for or electric vehicles from China after taking into account submissions by companies, a source familiar with matter said on Tuesday.

Tesla's proposed tariff rate will drop to 7.8%, from 9%, source said. For BYD, re was no change to its 17% tariff. For Geely, new rate would be 18.8% from a previous 19.3%. A peak rate of 35.3% would apply to SAIC and or companies not cooperating with EU investigation, source said.

se tariffs are on top of EU's standard 10% import duty for cars.

European Commission, which is conducting anti-subsidy investigation into EVs me in China, declined to comment. Tesla did not immediately respond to a Reuters' request for comment.

Last month, EU set out its initial proposal for final duties, establishing a separate rate of 9% for Tesla EVs, a sharp reduction from higher duty that will apply to all cooperating companies - now set at 20.7%.

This tariff is due to apply to certain Chinese producers such as Chery, Great Wall Motor Co and NIO and a number of joint ventures between Chinese companies and EU automakers.

China and affected companies were given 10 days to submit ir comments and Commission has taken se into account to establish revised tariff rates.

proposed final duties will be subject to a vote by EU's 27 states. y will be implemented unless a qualified majority of 15 EU members representing 65% of EU population vote against.

It is a high hurdle that is rarely reached, although this is a politically charged file.