Tesla has raised prices of its Model 3 electric vehicles in several European countries, including Germany, the Netherlands, and Spain. The price hike, which amounts to €1,500, is attributed to new tariffs imposed by the European Union (EU) on EVs manufactured in China. The EU implemented these tariffs in July, citing concerns about potential unfair subsidies provided to Chinese EV manufacturers.
Tesla, a major exporter of EVs from China, had previously warned of potential price increases in June due to the anticipated tariffs. The EU has categorized Tesla as cooperating with its investigation and assigned a 20.8% tariff rate. However, Tesla has requested a recalculation of its rate. Other companies like BMW have also sought tariff reductions for their China-made electric vehicles, including the Mini, which currently faces the highest duty. The tariffs are provisional and will remain in place until the EU decides on final duties by November.
The EU’s tariffs on Chinese EVs have prompted price increases for consumers in Europe, affecting major companies like Tesla and BMW. This situation highlights the ongoing trade tensions between the EU and China, particularly in the rapidly growing electric vehicle market.