Brussels (Brussels Morning Newspaper) – Elon Musk’s Tesla has joined Chinese producers and BMW in challenging European Union tariffs at the Court of Justice of the European Union on China-made electric vehicles, Reuters reported.
The court document indicated the U.S. automaker filed its complaint at the General Court, the lower of two Court of Justice of the European Union (CJEU) chambers, last Wednesday, the closing date for filing challenges. General Court proceedings last, on average, 18 months and can be appealed.
According to experts, the challenge will unlock a new front in Brussels’ row with Elon Musk, Tesla CEO and partner of U.S. President Donald Trump. In the past month, the EU intensified its investigation into Musk’s social media platform X over content moderation.
When did the EU impose tariffs on Chinese-made electric vehicles?
It actually imposed tariffs on Chinese-made EVs on 30th October 2024 after conducting an elaborate anti-subsidy investigation through the European Commission. In doing so, they considered that manufacturers in China made some unfair benefits using the state subsidy with intentions of intimidating its competitiveness into their producers based within the European Union. It started with between 7.8 percent to 35.3 percent per manufacturer.
These tariffs are set to stay in place for five years, until October 2029, unless the EU decides to lift them sooner based on negotiations or compliance with conditions.
The imposition of these tariffs was voted on by the EU member states on October 4, 2024, despite efforts by China to lobby against the measure. The investigation found that Chinese EV production was highly subsidized, which enabled these vehicles to sell at a much lower price than in Europe.
Which companies have challenged the tariffs against the EU?
BYD, Geely, and SAIC – major Chinese electric vehicle manufacturers have taken the court route against tariffs imposed by the European Union on Chinese EVs. These vary between 7.8% and 35.3% as a consequence of an EU investigation that stated these companies benefitted from unfair state subsidies.
BYD cars are at a tariff of 17%, while Geely stands at 18.8% with SAIC standing at 35.3%. Another major car manufacturer that has joined the case against these tariffs is German BMW, which expresses concern over competition and market dynamics. The cases were filed at the General Court of the European Union in Luxembourg.
