The European Union is reducing tariffs on Tesla vehicles imported from China to 9% from 20.8% and cutting import duties on other electric vehicle firms due to unfair subsidies in China. Tesla shares rose over 1% following the EU's draft decision.
Key Points
EU reduces tariffs on Tesla vehicles imported from China to 9% from 20.8%
Other electric vehicle firms also see reductions in import duties
EU cites unfair subsidies in China as reason for tariff cuts
Pros
Lower tariffs will benefit Tesla and other electric vehicle firms
Helps level the playing field for European EV producers
Cons
May lead to trade tensions between the EU and China