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

BRUSSELS (Reuters) - The European Union will lower proposed final tariffs on Tesla and slightly trim rates for other electric vehicles from China after taking into account submissions by the companies, a source familiar with the matter said on Tuesday.

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

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

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

Last month, the EU set out its initial proposal for final duties, establishing a separate rate of 9% for Tesla EVs, a sharp reduction from the 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 their comments and the Commission has taken these into account to establish revised tariff rates.

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

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

(Reporting by Philip Blenkinsop in Brussels and Gnaneshwar Rajan in Bengaluru; Editing by Savio D'Souza and Christina Fincher)