Tesla and BMW Join Chinese Challenge to EU TariffsTesla and BMW Join Chinese Challenge to EU Tariffs

Tesla and BMW are joining Chinese automakers challenging the import tariffs imposed on China-made battery-electric vehicles by the European Union.

While the tariffs are far below the punitive 100% levels imposed on Chinese BEVs by the U.S. and Canada, the automakers argue they are still set too high as a way to level the playing field for European domestic-built products to compete against unfairly state-subsidized BEV production in China.

The two western companies are also filing a challenge at the Court of Justice of the European Union (CJEU) against these EU tariffs, Reuters reports.

Earlier this month, the EU stepped up its probe into Elon Musk's social media platform X over content moderation and this move by Tesla could be seen as an extension of the billionaire’s conflict with the economic bloc.

Especially since Musk has already been accused of meddling in European politics by criticizing the U.K.’s prime minister, Keir Starmer, over his handling of Asian child sex abuse gangs and his video conversation on his platform with Germany’s hard-right party the Alternative for Germany (AfD).

Tesla and BMW join Geely and SAIC making a last-minute challenge to the EU’s recently imposed tariffs on their BEVs just a day before the deadline for filing challenges had passed.

Last October the EU slapped tariffs on BEVs after an investigation by its trade body, the European Commission, substantiated observations that the Chinese government was unfairly subsidizing its domestic automakers.

The result created a sliding scale built on the level of cooperation investigators received from Chinese brands. This resulted in tariffs ranging from 17.0% for BYD, 18.8% for Geely and 35.3% for SAIC on top of the EU's standard car import duty of 10%.

On average the court proceedings last about 18 months and any outcome can be appealed.

The China Chamber of Commerce for Import and Export of Machinery and Electronic Products, an industry body that has represented Chinese BEV manufacturers, also filed a complaint, the Chinese Chamber of Commerce says to the EU.

Negotiators from Brussels and Beijing have been in talks about possible minimum price commitments since September. The European Commission says it was aware of the court filings and are preparing its defense, adding that technical contact with Beijing was continuing.

Chinese manufacturers also complain that Tesla, the largest exporter of BEVs made in China into European markets, was not included in the investigation and yet was awarded the lowest tariff of 7.8% plus the standard 10%.