The European Union (EU) is reportedly planning to make slight downward adjustments to its proposed tariffs on electric vehicles (EVs) imported from China in response to new information provided by automakers and could potentially benefit companies like Tesla and other Chinese automakers.

According to Bloomberg, the EU is considering the following changes:

These special tariffs will be applied 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, is making these revisions based on new information provided by the companies involved. This follows a previous adjustment in August, where Tesla’s tariff was significantly reduced from 20.8% to 9% after the company requested a recalculation, citing lower subsidies from the Chinese government compared to domestic EV makers.

Moreover, China and the affected companies had a 10-day period to submit their comments on the initially proposed tariffs. The European Commission reviewed these comments to determine the revised tariff rates. The proposed final duties will now be put to a vote by the EU’s 27 member states.

If approved, the new tariffs are expected to come into effect in November, with implementation starting after October 30. The tariffs are set to remain in place for five years unless challenged by a qualified majority.

Despite progress, there could be obstacles to the implementation of these tariffs. Some countries, notably Germany and Hungary, have voiced opposition. To block the proposal, 15 EU member states representing 65% of the EU population would need to vote against it, which is a threshold that is rarely achieved.

These tariff adjustments, although seemingly minor, could have significant implications for the competitive landscape of the EV market in Europe. Tesla, in particular, stands to benefit from the reduced rate, as all Model 3s sold in Europe currently come from its Giga Shanghai factory.

As these rates may continue to be adjusted as discussions between the EU and relevant parties progress and new information emerges. The European Commission emphasizes that this is an ongoing process and final decisions have not yet been made public.

Read More: Canada Announces 100% Tariff On Chinese EV To Shield Its Automotive Industry

With the November implementation date approaching, the global automotive landscape will be closely watching the EU’s final decision and its potential impact on the EV market in Europe.

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