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Elon Musk’s Tesla and German automotive giant BMW have challenged EU import tariffs on China-made electric vehicles at the European Union’s top court, the European Commission confirmed on Monday.
The carmakers, both of which manufacture EVs in China, joined Chinese automakers BYD, Geely, and SAIC in filing legal challenges at the Court of Justice of the European Union against the additional tariffs, which can reach up to 35 per cent.
“We take note of these cases and look forward to defending ourselves in court,” said European Commission spokesman Olof Gill to AFP.
Brussels imposed the extra tariffs on Chinese-made EVs at the end of October after an anti-subsidy investigation found that Beijing’s state support was unfairly undercutting European automakers.
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Europe’s car industry is already grappling with high manufacturing costs, a sluggish transition to EVs, and stiff competition in key markets such as China.
China has consistently denied allegations that its industrial policies are unfair and has lodged a complaint with the World Trade Organization regarding the tariffs. It later retaliated by imposing “anti-dumping measures” on brandy imports from the EU in what appeared to be a tit-for-tat response.
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Under the tariff scheme, Tesla vehicles manufactured in Shanghai face an additional surcharge of 7.8 per cent on top of the existing 10 per cent tariff on EV imports from China.
BYD is subject to a 17 per cent surcharge, Geely 18.8 per cent, and SAIC 35.3 per cent. Other groups that cooperated with the European investigation face an additional 20.7 per cent tariff.
The German government, alongside four other EU member states, opposed the measures, citing concerns over potential retaliation against its own manufacturers.
Tesla owner Elon Musk, a close ally of former US President Donald Trump, has played a prominent role in global trade tensions, including threats of extra tariffs on both allies and rivals such as the EU and China during Trump’s administration.
AFP
