Tesla has taken legal action against the European Union (EU) over recently imposed tariffs on electric vehicles (EVs) made in China. The case, filed with the General Court of the European Union (CJEU), follows similar lawsuits from German automaker BMW and Chinese EV manufacturers, including BYD, Geely, and SAIC.
The EU’s decision to implement additional tariffs came after an anti-subsidy investigation found that Beijing’s financial support for domestic EV manufacturers was unfairly undercutting European automakers. The tariffs, first introduced in October 2024, range from a low of 7.8%, a rate which applies to Tesla Model 3s built at Giga Shanghai, to as high as 35.3% for some Chinese brands, on top of the existing 10% import duty.
Tesla is not alone in opposing the tariffs. BMW, which produces electric Mini Coopers in China, has also taken legal action, arguing that such measures could harm global automakers and slow down the transition to electric mobility in Europe. The German government, along with several other EU member states, has expressed concerns over the tariffs, fearing retaliatory trade measures from China. (via Reuters)
Legal proceedings in the General Court typically take about 18 months, with an option for appeals to the European Court of Justice (ECJ), the EU’s highest judicial authority. While the specifics of Tesla’s argument remain undisclosed, it is expected that the automaker will challenge the justification for the tariffs and their potential impact on competition.
The EU is not alone in imposing tariffs on Chinese-made EVs. Canada imposed a similar tariff last year of 100% on Chinese-made EVs. The Canadian government also removed the federal rebate on EVs imported into Canada from China. Combined, these moves forced Tesla to abandon shipping cars from China to Canada, and instead go back to bringing them up from the United States, which has also imposed tariffs on Chinese-made EVs.
