Tesla and BMW Sue EU Over Punitive Tariffs on Chinese EVs

Tesla and BMW Sue EU Over Punitive Tariffs on Chinese EVs

Tesla and BMW have joined forces with Chinese automakers to challenge the European Union’s import tariffs on electric vehicles (EVs) at the General Court of the European Union. These lawsuits come in response to the EU’s decision to impose tariffs as high as 45% on Chinese-made EVs, citing unfair subsidies and market saturation with cheaper cars.

Tesla’s Shanghai-produced EVs face a 7.8% tariff, while BMW’s China-manufactured vehicles are taxed at 20.7%. Chinese automakers BYD, Geely, and SAIC have also filed similar appeals in Luxembourg, arguing that the tariffs undermine global trade and slow progress toward decarbonization.

BMW spokespersons have expressed opposition to the duties, calling for negotiated solutions to avoid a damaging trade conflict. Meanwhile, Tesla has yet to comment.

European Commission officials defended the tariffs, highlighting evidence of unfair competition but remain open to dialogue. The legal battles could potentially overturn the law authorizing these duties, with automakers seeking to recover losses if successful.

The dispute underscores growing tensions between the EU and global EV manufacturers, with the bloc aiming to balance competition while fostering a fair market.

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