Request for EU-level Reduction... 100% Tariff Without Exception for Canada
On the 28th (local time), major foreign media reported that Tesla contacted the Canadian government to request a tariff reduction on its electric vehicles produced in China.
According to sources, Tesla requested that the tariff rate applied to its electric vehicles be lowered to the level of the European Union (EU) ahead of Canada's planned tariff increase on Chinese-made electric vehicles.
Earlier, on the 26th, the Canadian government announced it would impose a 100% tariff on Chinese-made electric vehicles. This followed the U.S. announcement in May to raise tariffs on Chinese-made electric vehicles from 25% to 100%.
However, despite Tesla's request, Tesla electric vehicles remained included in Canada's tariff increase. While the U.S. does not import Tesla vehicles produced in China, Canada is known to import China-produced Model 3 and Model Y vehicles.
Sources said that Tesla has not contacted the Canadian government since then.
Earlier, on the 20th, the EU decided to lower the countervailing tariff rate on Tesla’s China-produced vehicles to 9%. Including the basic tariff of 10%, the total rate applied is 19%. This is significantly lower compared to competitors who face tariffs of up to 46.3%.
According to sources, the EU considered only direct subsidy costs when imposing tariffs on Tesla, whereas the U.S. and Canada took into account not only subsidies but also industrial overcapacity, non-market policies, and environmental and labor standards.
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