Tesla Joins Lawsuit Against EU Over Tariffs on China-Made EVs – Report

Tesla cuts down on delivery times in China after upgrading Giga Shanghai Tesla cuts down on delivery times in China after upgrading Giga Shanghai
Credit: Tesla

Tesla has joined a growing group of automakers, including BYD, SAIC, Geely, and BMW, in challenging the European Union’s tariffs on electric vehicles (EVs) made in China. Tesla, which operates Gigafactory Shanghai to produce both domestic and exported vehicles, has been shipping many of these cars to Europe.

However, political pressure to prioritize domestic manufacturing has led to the EU Commission imposing tariffs on China-made EVs. Tesla’s tariff is the lowest at 8%, but other companies like SAIC face as much as 35%.

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Credit: Tesla_Asia/X

The EU Commission argues that the tariffs are justified following a year-long anti-subsidy investigation that revealed China’s significant support of its EV industry, which helped China become a global leader in the sector. In contrast to the U.S. and Canada, which imposed 100% duties on Chinese-made EVs, the EU believes its case is more grounded.

Tesla’s participation in the lawsuit was reported by Politico this week. Olof Gill, the Commission’s trade spokesperson, expressed readiness for the legal challenge, stating, “We’re ready. We’re a rules-based club here in the EU. If they want to take us to court, they can take us to court.”

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Credit: Tesla_Asia/X

The lawsuit aims to neutralize the duties, which the automakers claim have caused financial losses. The China Chamber of Commerce for the Import and Export of Machinery and Electronics (CCCME) is also reportedly filing a case against the tariffs.

BMW, which manufactures electric vehicles in China, has also joined the challenge at the Court of Justice of the European Union (CJEU). The EU introduced these tariffs in late October following the anti-subsidy investigation, and they were part of the broader trade tensions over the rapidly growing Chinese EV sector.

Source: Politico

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