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Tesla and BMW have filed lawsuits against the EU's executive body over recently imposed tariffs on electric vehicles manufactured in China, challenging the trade policies. The legal action, filed with the EU's General Court last week, marks an escalating tension between major automotive manufacturers and European regulators.
The EU implemented these controversial tariffs in October 2024 following an investigation that concluded China was unfairly subsidizing its EV industry. Tesla faces a 7.8% anti-subsidy tariff on top of an existing 10% levy, while BMW must contend with a steeper 20.7% duty affecting its electric Mini Cooper and Mini Aceman models produced in China.
BMW's stance on the matter is clear and decisive. The German automaker stated that the EU duties "do not strengthen the competitiveness of European manufacturers" and instead "harm business model of globally active companies." They argued that these restrictions could potentially slow down transportation sector decarbonization by limiting EV availability to European customers.
With regard to Elon's strained relationship with the EU, recent tensions have emerged from his support of right-wing political parties and concerns over content moderation on his X platform. Tesla, which manufactures vehicles for the European market in China, has remained silent on the specifics of their legal challenge.
Chinese manufacturers have also joined the fray, with BYD, Geely, and SAIC filing their own challenges. The impact of these tariffs has already been felt in the market, with MG (owned by SAIC) experiencing a dramatic 58% drop in European registrations in November after being hit with the highest tariff rate of 45%.
The European Commission, through spokesman Olof Gill, has maintained a firm position, stating, "We're prepared to defend our case in court as necessary." Meanwhile, attempts at negotiating a comprehensive agreement between the EU and China to replace these tariffs have shown limited progress, suggesting a potentially prolonged legal battle ahead.
These proceedings at the General Court typically span around 18 months and include the possibility of appeal, indicating that this trade dispute could have long-lasting implications for the global EV market and international trade relations.
