Elon Musk’s Tesla and German automaker BMW have filed legal challenges at the European Union’s top court against import tariffs on China-made electric vehicles (EVs), the European Commission confirmed on Monday.
The two carmakers, which manufacture EVs in China, have joined Chinese automakers BYD, Geely, and SAIC in contesting the additional tariffs of up to 35 percent.
“We take note of these cases and look forward to defending ourselves in court,” said European Commission spokesperson Olof Gill to AFP.
The tariffs, imposed by Brussels at the end of October, followed an anti-subsidy investigation that found Beijing’s state support for EV manufacturers was unfairly undercutting European automakers.
Europe’s car industry is already under pressure from high production costs, a slow transition to electric vehicles, and fierce competition in key markets such as China.
China has consistently denied claims of unfair industrial policies and has lodged a complaint with the World Trade Organization over the tariffs. In response, Beijing imposed “anti-dumping measures” on EU brandy imports, signaling a tit-for-tat trade dispute.
Under the EU tariff scheme, Tesla vehicles produced at its Shanghai factory face an additional 7.8 percent surcharge on top of the existing 10 percent tariff for EV imports from China. Other automakers face even higher surcharges, including BYD (17 percent), Geely (18.8 percent), and SAIC (35.3 percent).
Germany, along with four other EU member states, opposed the tariff measures, raising concerns about potential retaliation against its own manufacturers.
Tesla owner Elon Musk, known for his prominent role in global trade discussions, has previously been at the center of international trade tensions. During former U.S. President Donald Trump’s administration, Musk supported calls for additional tariffs on both allies and rivals, including the EU and China.
AFP
