Tesla and BMW Challenge EU Tariffs on China-Made Electric Vehicles

Tesla and BMW Challenge EU Tariffs on China-Made Electric Vehicles

By Fly Cable News

Tesla and German automaker BMW have filed legal challenges against the European Union’s tariffs on electric vehicles (EVs) manufactured in China. The European Commission confirmed the move on Monday.

The carmakers, along with Chinese manufacturers BYD, Geely, and SAIC, are contesting the tariffs—some of which reach up to 35%—at the European Court of Justice.

European Commission spokesperson Olof Gill stated, “We take note of these cases and look forward to defending ourselves in court.”

The EU imposed these additional tariffs in October following an anti-subsidy investigation that concluded Beijing’s state support gave Chinese automakers an unfair advantage over European competitors.

The European car industry, already burdened by high manufacturing costs, a slow EV transition, and fierce competition from China, faces significant challenges as a result of these measures.

China has denied the allegations of unfair trade practices and has filed a complaint with the World Trade Organization. In retaliation, it imposed anti-dumping measures on EU brandy imports, escalating trade tensions further.

Tesla, whose Shanghai-produced vehicles are now subject to a 7.8% surcharge on top of the standard 10% tariff, joins other automakers facing similar levies: BYD (17%), Geely (18.8%), and SAIC (35.3%). Companies cooperating with the EU investigation face an additional 20.7% tariff.

Germany and four other EU member states opposed the tariffs, expressing concerns about potential retaliation against their industries.

Elon Musk, Tesla’s CEO and a prominent figure in global trade debates, has frequently been at the center of such tensions, including during his support for tariffs under former U.S. President Donald Trump’s administration.