Apr 4, 2018 - 07:38 pm

Tesla may be hit hard as China threatens to raise taxes


As the Trump administration intensifies its trade war against China, Beijing plans to hit back with equal measures as it publishes a list of good threatened with higher tariffs. EVs are on that list and this could hit Tesla particularly hard and other U.S. importers too.

Already the Californian EV maker must import every electric car to sell in China, evoking a 25 percent import tax. Different from other American carmakers such as Ford or GM for example, Tesla does not have a production facility in China.

Still back in June it looked as if Tesla had cut a deal with the local government in Shanghai that would allow the Californians to set up shop in China without the otherwise required local joint venture partner (we reported). However, the deal has come to a halt with the authorities in Beijing insisting on the rules reportedly.

But the latest list could even affect German carmakers such as BMW or Daimler, according to Bloomberg, as Beijing also threatens to include SUVs in the steep taxation. Both companies produce SUVs in the States to ship them to China. However, BMW and Daimler have already established JVs in the PRC which will increasingly build electric cars. Apart from its JV with Brilliance, BMW is also planning to make electric Minis in China together with Great Wall for example.


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Found on electrive.com
04.04.2018 19:08