BMW and Tesla have filed lawsuits against the European Commission over EV tariffs on Chinese-made electric vehicles. The automakers argue the tariffs, ranging from 7.8% to 35.3%, harm global business and hinder EV supply. The legal battle adds to concerns over rising competition from Chinese manufacturers.
Automakers Sue Over Import Tariffs
BMW and Tesla Shanghai have filed lawsuits against the European Commission over tariffs imposed on electric vehicles (EVs) made in China. These companies join other Chinese manufacturers like BYD, SAIC, and Geely in opposing the EU’s trade restrictions.
Both companies submitted cases to the European Union’s Court of Justice, though further details remain undisclosed. The tariffs have negatively impacted their operations, causing BMW’s stock to decline by 0.35% and Tesla’s to drop by 2.32% on Tuesday afternoon.
The EU has imposed a 7.8% tariff on Tesla’s Chinese-made EVs, while BMW faces a 20.7% tariff. Geely has been hit with an 18.8% duty, BYD with 17%, and SAIC with the highest levy at 35.3%. These are in addition to the standard 10% tariff on all vehicle imports. BMW argues these measures do little to strengthen European automakers’ competitiveness.
A BMW spokesperson told The Wall Street Journal: “Instead of supporting European car companies, these tariffs hurt global businesses, restrict EV supply, and slow transport decarbonization.” BMW remains open to negotiations but stresses that trade conflicts benefit no one. The European Commission, however, insists any agreement must address unfair competition found in its investigations.
If successful, these lawsuits could annul the EU’s tariff regulations and allow affected automakers to seek compensation for financial losses. Euronews has reached out to BMW and Tesla for further comments.
Rising Chinese Competition Worries European Carmakers
The EU imposed tariffs due to concerns that China unfairly subsidizes its EV manufacturers, enabling them to sell at lower prices and undercut European competitors. EU investigations found that subsidies include reduced land costs, low-interest loans, and financial support for suppliers like steel producers.
To bypass these tariffs, many Chinese automakers are shifting focus to hybrid models, which remain exempt from the current regulations. This move raises concerns about the long-term effectiveness of the EU’s EV tariffs.
European automakers continue to lose market share to Chinese brands, which attract customers with lower prices, better features, and innovative designs. With economic uncertainty and a cost-of-living crisis affecting many European consumers, affordability remains a key factor in purchasing decisions.
