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Tesla and BMW, both major electric vehicle manufacturers, have joined Chinese automakers in challenging the European Union's import tariffs on China-made EVs. The carmakers, which also produce EVs in China, have filed their challenges with the Court of Justice of the European Union (CJEU), joining earlier filings by BYD, Geely, and SAIC against the tariffs of up to 35 percent.
"We take note of these cases and we look forward to defending ourselves in court," commission spokesman Olof Gill said.
Brussels imposed the extra tariffs on Chinese-made electric cars at the end of October after an anti-subsidy investigation concluded Beijing's state support was unfairly undercutting European automakers. The move came as Europe's car industry has been plunged into crisis by high manufacturing costs, a stuttering switch to electric vehicles (EV) and increased competition in key market China.
It followed a more radical US approach that saw former president Joe Biden quadrupling import tariffs on EVs from China to 100 percent, as part of a package of hikes having accused Beijing of "cheating" rather than competing.
Beijing has consistently denied its industrial policies are unfair and has lodged a complaint with the World Trade Organization about the EU tariffs. It later imposed "anti-dumping measures" on brandy imported from the bloc, in what appeared to be a tit-for-tat measure.
Under the EU tariff scheme, Tesla vehicles manufactured in Shanghai face an additional surcharge of 7.8 percent on top of 10 percent already in place for EV imports from China. BYD similarly faces a 17 percent surcharge, Geely 18.8 percent and SAIC 35.3 percent.
The German government was one of five EU member states that opposed the measures, fearing retaliation against its own manufacturers. The country's automotive flagships, including BMW, are strongly established in China, where they produce certain models, including for the European market. Similarly, US automaker Tesla produces its famous Model 3 in its Shanghai factory and exports it to Europe. Tesla-owner Musk is a key ally and adviser to US President Donald Trump, who has sent trade tensions soaring worldwide since being elected in November by threatening to impose extra customs duties on allies and rivals including the EU and China.
