Tesla and BMW Challenge EU Tariffs on China-Made Electric Vehicles

The automakers have filed legal complaints in the EU's top court, disputing tariffs imposed after an anti-subsidy investigation into Chinese EV manufacturers.

• Tesla and BMW have joined Chinese automakers BYD, Geely, and SAIC in filing legal challenges against EU tariffs on electric vehicles imported from China.
• The EU imposed tariffs of up to 35.3% in October 2024 following an investigation that concluded Chinese state subsidies were unfairly undercutting European automakers.
• Tesla's Shanghai-produced vehicles face a lower tariff rate of 7.8%, compared to higher rates for competitors, but the company still contests the policy.
• Germany, home to major automakers like BMW, opposed the tariffs, citing potential retaliation against its manufacturers operating in the Chinese market.
• The legal challenges come as the EU's automotive sector grapples with high production costs, a challenging transition to electric vehicles, and growing competition from Chinese manufacturers.

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