Tesla and BMW challenge EU's steep tariffs on electric cars
Tesla and BMW have filed lawsuits against the European Commission, reports Bloomberg. This action is in protest of the punitive tariffs on the import of electric cars from China to the EU, which can be as high as 45%.
"The lawsuit by Elon Musk reflects recent tensions with the EU fueled by the richest man in the world. Musk has angered European politicians with his support for right-wing parties, such as Germany's AfD, and has also faced EU scrutiny over insufficient content moderation on his platform X," writes Bloomberg.
Meanwhile, BMW stated that the EU tariffs on electric cars hinder rather than support the competitiveness of European manufacturers, negatively impacting companies operating in the global market. Bloomberg notes that the details of both lawsuits have not been disclosed.
Tariffs reduce the availability of electric cars for European customers and may even slow down efforts to decarbonize transport, the company emphasized.
Tariffs on electric cars from China in the EU
The European Commission voted in October to enact tariffs following an investigation that concluded China unfairly subsidized its industry. As the agency recalls, months of negotiations failed to resolve the trade dispute, prompting Brussels to introduce new charges on top of the existing 10% import duty. It is important to note that the tariffs affect not only Chinese manufacturers' electric cars but also Western brands produced in China.
The EU imposed an additional 7.8% anti-subsidy tariff on Tesla, besides the existing 10% charge. BMW's imports were subjected to a tariff of 20.7%. This significantly impacts the company because its electric Mini Cooper and the 100% electric Mini Aceman are produced in China, as reported by Autogear.
