Tesla takes EU to court over tariffs on Chinese EVs
By Jack Aylmer (Energy Correspondent), Ian Kennedy (Lead Video Editor), Mohammed Ali (Senior Graphics Designer)
Tesla has filed a lawsuit against the European Union, challenging tariffs imposed on electric vehicle imports from China. The case, initiated by the Elon Musk-led company’s Shanghai subsidiary, was confirmed by the European Court of Justice on Monday, Jan. 27, though specific details about the legal arguments remain undisclosed.
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This litigation action follows the EU’s approval of anti-subsidy tariffs in October 2024. The duties range from 7.8% for Tesla to as high as 35.3% for other Chinese electric vehicle manufacturers. These charges are in addition to the standard 10% import tariff already applied to the industry.
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The EU’s decision stemmed from an investigation into allegations of unfair practices by the Chinese government, including soft loans, favorable land deals and subsidies for suppliers. These measures reportedly enabled Chinese EV manufacturers to offer vehicles at what officials claimed were “artificially low” prices that undercut European automakers.
How do these tariffs impact Tesla and other automakers?
Several Chinese carmakers and Germany’s BMW, which produces a significant portion of its vehicles in China, have also filed similar claims against the EU over these tariffs.
Electric vehicles manufactured in China accounted for about 20% of all EV sales in the EU in 2023, equating to about 300,000 units. Tesla represented 28% of these imports, according to European Federation for Transport and Environment
The EU’s investigation found that Tesla received less government support compared to other manufacturers. Officials said this results in the company being subject to the lowest tariff rate among those affected.
What happens next?
In response to the tariffs, Tesla has adjusted its import strategy. The company exports its Model 3 vehicles from Shanghai to the EU, while producing its Model Y locally at its Berlin facility.
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The EU’s second-highest court, the General Court, will hear Tesla’s lawsuit. Proceedings in such cases typically last around 18 months. Rulings can be appealed to the European Court of Justice. A spokesperson for the European Commission stated that the EU is prepared to defend its decision in court.
[Jack Aylmer]
TESLA HAS FILED A LAWSUIT AGAINST THE EUROPEAN UNION OVER TARIFFS IMPOSED ON IMPORTS OF ELECTRIC VEHICLES FROM CHINA.
THIS CASE, BROUGHT BY THE ELON MUSK-LED COMPANY’S SHANGHAI SUBSIDIARY, WAS CONFIRMED BY THE EUROPEAN COURT OF JUSTICE ON MONDAY.
THE LEGAL ACTION COMES AFTER THE EU IMPOSED ANTI-SUBSIDY TARIFFS IN OCTOBER-
RANGING FROM 7.8% FOR TESLA AND UP TO 35.3% FOR OTHER CHINESE ELECTRIC VEHICLE MANUFACTURERS.
THESE CHARGES ARE IN ADDITION TO A STANDARD 10% IMPORT TARIFF APPLIED TO THE INDUSTRY.
THE DECISION FOLLOWED AN EU INVESTIGATION INTO ALLEGED UNFAIR PRACTICES BY THE CHINESE GOVERNMENT-
HELPING MAKE PRICES ON EVS COMING FROM THE NATION ARTIFICIALLY LOW AND UNDERCUTTING EUROPEAN AUTOMAKERS THROUGH SOFT LOANS, CHEAP LAND DEALS, AND SUBSIDIES FOR SUPPLIERS.
TESLA IS NOT ALONE IN CHALLENGING THESE MEASURES-
SEVERAL CHINESE CARMAKERS AND GERMANY’S BMW-
WHICH MANUFACTURES A SIGNIFICANT PORTION OF ITS CARS IN CHINA-
ALSO FILED SIMILAR CLAIMS.
ABOUT 20% OF ELECTRIC VEHICLES SOLD IN THE EU LAST YEAR CAME FROM CHINA-
WITH TESLA ACCOUNTING FOR 28% OF THESE IMPORTS, ACCORDING TO THE ENVIRONMENTAL NGO TRANSPORT AND ENVIRONMENT.
THE EU’S INVESTIGATION FOUND TESLA RECEIVED LESS SUPPORT FROM THE CHINESE GOVERNMENT COMPARED TO OTHER MANUFACTURERS-
RESULTING IN IT RECEIVING THE LOWEST TARIFF RATE IMPOSED.
IN RESPONSE TO THE TARIFFS, TESLA STATED IT IS ADJUSTING ITS IMPORT STRATEGY-
THE EV MAKER CURRENTLY EXPORTS ITS MODEL 3 FROM SHANGHAI TO THE EU, WHILE PRODUCING ITS MODEL Y AT ITS BERLIN FACTORY.
TESLA’S LAWSUIT WILL BE HEARD AT THE GENERAL COURT-
THE EU’S SECOND-HIGHEST COURT-
WHERE PROCEEDINGS CAN LAST 18 MONTHS ON AVERAGE AND VERDICTS CAN BE APPEALED.
A TRADE SPOKESPERSON FOR THE EUROPEAN COMMISSION SAID THE EU IS PREPARED TO DEFEND ITS DECISION IN COURT.
FOR THE LATEST STORIES FROM THE EV SECTOR, DOWNLOAD THE STRAIGHT ARROW NEWS APP AND SIGN UP FOR ALERTS FROM ME- JACK AYLMER.
Media Landscape
See who else is reporting on this story and which side of the political spectrum they lean. To read other sources, click on the plus signs below. Learn more about this dataBias Distribution
Left
Tesla, BMW Sue EU After China-Made EVs Are Hit by Trade Curbs
Click to see story on BloombergElectric mobility: Tesla files complaint against EU tariffs on electric cars from China
Click to see story on Zeit OnlineTesla, BMW challenge EU tariffs on China-made electric cars
Click to see story on Punch NewspapersMusk’s Tesla takes European Commission to court
Click to see story on Novinky.czTesla also sues EU over electric vehicle duties
Click to see story on Politico EuropeTesla takes EU to court over import tariffs
Click to see story on NRC HandelsbladEU ‘ready’ to defend EVs tariffs against Tesla legal challenge
Click to see story on EU ObserverTesla goes after EU for tariffs on its Chinese EVs despite getting lowest rates
Click to see story on ElectrekTesla, BMW take EU to court over China EV tariffs
Click to see story on Channel News AsiaTesla, BMW, Chinese appeal against EU tariffs on electric cars – Mondo Motori
Click to see story on ANSATesla, BMW sue EU after China-made EVs hit by tariffs
Click to see story on FortuneTrade dispute – BMW also files legal complaint against EU additional tariffs
Click to see story on DeutschlandfunkTesla takes EU to court over tariffs on electric vehicles from China
Click to see story on Financial TimesTesla and BMW take legal action against E.U. over EV tariffs
Click to see story on QuartzTesla, BMW take EU to court over China EV tariffs
Click to see story on TechXplorePolish minister on Musk’s remarks: Poles should boycott Tesla
Click to see story on Lietuvos Radijas ir TelevizijaTesla, BMW sue EU after China-made EVs hit by tariffs
Click to see story on The Straits TimesAutomobile: Tesla and BMW tackle European surcharges
Click to see story on Le FigaroFrance warns: the EU’s “strict position” on car emissions benefits China and Tesla
Click to see story on SapoTesla and BMW join suit before European justice for tariffs on Chinese electric cars
Click to see story on La Nación, Grupo NaciónAfD’s Handbook for Breaking Down the Firewall — Written by Elon Musk
Click to see story on hungarianconservative.comTesla, BMW join Chinese EV makers in challenging EU tariffs
Click to see story on The Star Kuala LumpurTesla has also taken legal action against EU tariffs on cars from China
Click to see story on OrigoElon Musk harming Tesla sales with political actions as millions of British drivers could opt for Chinese EVs
Click to see story on GB NewsTesla, BMW and Chinese automakers appeal against European tariffs on electric vehicles
Click to see story on ProtothemaRight
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Tesla and BMW sue EU against additional tariffs on Chinese-made electric vehicles
Click to see story on GloboTesla sues EU over tariffs on Chinese electric cars – 27/01/2025
Click to see story on UOLTesla goes to court against EU
Click to see story on ГОЛОВНАTesla, BMW and Chinese electric car manufacturers challenge EU customs duties at CJEU
Click to see story on AdevarulTesla Challenges EU Tariffs: A Legal Battle
Click to see story on DevdiscourseBMW and Tesla sue the EU
Click to see story on Upsala Nya TidningBMW is also filing a court complaint against EU punitive tariffs
Click to see story on nachrichten.atMusk takes legal action against EU over Tesla ties
Click to see story on in.grAfter Elon Musk’s political statements, part of Poles and Germans boycott Tesla
Click to see story on aktuality.sk“No Pole should buy Tesla.” Minister on Musk’s words
Click to see story on Do RzeczyTesla joins legal challenges to EU tariffs on electric vehicles
Click to see story on Jornal de NegóciosTesla challenges EU tariffs on China
Click to see story on Heti VilággazdaságTesla sues European Union over tariffs on electric vehicles imported from China
Click to see story on Revista OesteTesla, BMW take EU to court over China EV tariffs
Click to see story on Legit.ng – Nigeria news.BMW, “alliance” with Chinese manufacturers against tariffs imposed by the EU on imports of electric cars from China
Click to see story on Stirile Pro TVNitras believes that no normal Pole should buy Tesla. He proposes a consumer boycott
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