The European Union reduces planned tariffs on Tesla EVs and other Chinese companies.

The European Union announced on Tuesday that it would lower tariffs on Tesla vehicles imported from China from 20.8% to 9%, and also reduce import duties on other Chinese electric vehicle companies.

The EU announced in June that it would impose higher tariffs on Chinese electric vehicle imports due to the subsidies they receive, which are considered unfair and pose a threat to European EV producers.

The European Commission, the executive body of the EU, declared that the battery-electric vehicle industry in China receives unfair subsidies and decided to impose provisional countervailing duties on BEV imports from China in the EU's best interest.

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—CNBC's Sophie Kiderlin contributed to this article.