Tesla and BMW Challenge EU Tariffs on Chinese-Made Electric Vehicles
Automakers file lawsuits against European Union tariffs aimed at Chinese electric vehicles, citing negative impact on global competitiveness.
Tesla and BMW have filed legal challenges against the European Union's import tariffs on Chinese-made electric vehicles (EVs), joining a group of Chinese automakers, including BYD, Geely, and SAIC.
The lawsuit, submitted to the Court of Justice of the European Union (CJEU), follows the EU's decision to impose additional tariffs on Chinese EVs, which were introduced after an anti-subsidy investigation concluded that China's state support for its EV manufacturers was undermining European automakers.
The tariffs, which can reach up to 35%, were implemented in October 2024 and have been criticized by carmakers, including BMW, for limiting the supply of EVs to European customers and potentially hindering decarbonization efforts in the transport sector.
BMW has argued that the duties do not improve the competitiveness of European manufacturers and seeks to annul the regulation.
Tesla, which manufactures its Model 3 in Shanghai, is similarly affected by the tariff, which adds a 7.8% surcharge to the existing 10% tariff on Chinese EVs. China's response to the EU measures has included a complaint to the World Trade Organization (WTO) and the imposition of anti-dumping duties on brandy imported from the EU. The European automotive industry, which employs over 13 million people, is facing growing competition from Chinese electric vehicles, which accounted for 14% of the market share in the EU by the second quarter of 2024, a sharp increase from less than 2% in 2020. The EU's tariffs have sparked concerns about potential trade conflicts, particularly in light of similar moves by the United States to impose high tariffs on Chinese EVs. EU leaders, including Ursula von der Leyen, are set to discuss the issue in an upcoming meeting to address the challenges facing Europe's auto sector.
The lawsuit, submitted to the Court of Justice of the European Union (CJEU), follows the EU's decision to impose additional tariffs on Chinese EVs, which were introduced after an anti-subsidy investigation concluded that China's state support for its EV manufacturers was undermining European automakers.
The tariffs, which can reach up to 35%, were implemented in October 2024 and have been criticized by carmakers, including BMW, for limiting the supply of EVs to European customers and potentially hindering decarbonization efforts in the transport sector.
BMW has argued that the duties do not improve the competitiveness of European manufacturers and seeks to annul the regulation.
Tesla, which manufactures its Model 3 in Shanghai, is similarly affected by the tariff, which adds a 7.8% surcharge to the existing 10% tariff on Chinese EVs. China's response to the EU measures has included a complaint to the World Trade Organization (WTO) and the imposition of anti-dumping duties on brandy imported from the EU. The European automotive industry, which employs over 13 million people, is facing growing competition from Chinese electric vehicles, which accounted for 14% of the market share in the EU by the second quarter of 2024, a sharp increase from less than 2% in 2020. The EU's tariffs have sparked concerns about potential trade conflicts, particularly in light of similar moves by the United States to impose high tariffs on Chinese EVs. EU leaders, including Ursula von der Leyen, are set to discuss the issue in an upcoming meeting to address the challenges facing Europe's auto sector.
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