EU plans to slash tariff for China-made Tesla cars to 9%

The European Union said on Tuesday that it plans to impose a 9% tariff on Tesla (NASDAQ:TSLA) cars imported from China, down from 20.8% anticipated earlier.

The EU said that improper subsidies given to Chinese electric vehicle manufacturers create an unfair playing field for European companies.

This tariff will be added on top of the ordinary import duty of 10% levied on imports of battery electric vehicles.

The tariff is part of a draft proposal that will require further discussions and approvals before becoming definitive. The regulatory body said that after receiving comments from interested parties on its planned tariffs, it would make a “slight adjustment of the proposed duty rates based on substantiated comments on the provisional measures.”

Tesla (TSLA) had requested a recalculation of its tariff rate based on the specific subsidies the company received.

The EU still proposed final duties of up to 36.3% on other Chinese EV makers, slightly lower than the maximum provisional duty of 37.6% set in July

Shares of Tesla (TSLA) traded 0.93% higher on Tuesday during pre-market hours of trade.