Tesla sought lower tariff on China-made EVs before Canada decision – report

Tesla (NASDAQ:TSLA) had approached the Canadian government and requested a lower tariff on its vehicles, ahead of the country announcing a 100% surtax on all Chinese-made electric vehicles to curb oversupply, a source told Reuters.

The EV maker had asked for a tariff rate similar to the one it received in the European Union, according to the government source.

While the EU considered direct subsidy costs when calculating the tariff for Tesla (TSLA), the U.S. and Canada factored in subsidies, industrial over-capacity, and non-market, environmental and labor policies, the source noted.

The EU eased the tariff on Tesla (TSLA) cars imported from China to 9% from the 20.8% proposed earlier, following the automaker’s request to revise the rate. This tariff would be in addition to the 10% import duty already in place.

Tesla (TSLA) does not disclose how many China-made vehicles it exports to Canada, But Reuters’ examination of vehicle-identification codes showed that Model 3 compact sedan and Model Y crossover models made in Shanghai were exported to Canada.