Tesla and BMW challenge EU tariffs on electric vehicle imports

Tesla and BMW have filed lawsuits against the European Commission, contesting tariffs of up to 45% on electric vehicle (EV) imports into the European Union. The cases, registered with the EU’s General Court, are part of growing legal opposition to the bloc’s trade measures from automakers.

The European Commission imposed the tariffs in October after an investigation concluded that Chinese subsidies for EVs created unfair competition. The measures raised import duties on EVs from 10% to as much as 45% for some manufacturers. Negotiations with China over a replacement trade agreement have so far seen limited progress.

Tesla, which produces EVs for the European market in China, faces a combined 17.8% tariff, including a 7.8% anti-subsidy duty. The company has not commented publicly on the lawsuit. 

BMW, whose electric Mini Cooper and Mini Aceman are manufactured in China, now faces tariffs totalling 20.7%. In a statement, the German automaker warned that the measures could hinder decarbonisation efforts in the transport sector, “The tariffs harm globally active companies, limit EV supply to European customers, and risk slowing the transition to cleaner transport solutions.”

BMW also called for a political solution to avoid a trade conflict and said, “It is important to avoid a trade conflict that only has losers in the end.”

State-owned SAIC, the parent company of MG, has been hit hardest, with combined tariffs reaching 45%. MG, once the top-selling Chinese car brand in Europe, reported a 58% drop in November registrations, according to Jato Dynamics data.

The European Commission has defended the tariffs as necessary to protect domestic manufacturers from unfair competition. “We’re prepared to defend our case in court as necessary,” said Olof Gill, a spokesperson for the Commission. 

The legal challenges highlight rising tensions in the global EV market as automakers compete for dominance. Tesla and BMW’s lawsuits reflect concerns about the impact of trade policies on EV affordability and the broader push for decarbonisation.

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