EU faces legal action from Tesla, BMW over tariffs on Chinese-made EVs
Tesla, owned by Elon Musk, is taking the European Union (EU) to court over its tariffs on electric vehicles imported from China. Filed last Wednesday with the European Court of Justice (ECJ) by Tesla’s Shanghai division, the lawsuit comes in the wake of similar legal moves by BMW and other Chinese car manufacturers.
The tariffs are part of the EU’s ongoing efforts to combat what it sees as unfair trade practices. A 2023 investigation concluded that Chinese EV manufacturers, including Tesla’s Shanghai operations, benefited from government subsidies like low-interest loans, cheap land, and supplier discounts.
Following the probe, the EU introduced steep anti-subsidy tariffs in late October 2024, with Tesla hit by a 7.8 percent rate and other manufacturers facing duties as high as 35.3 percent. These levies are in addition to the EU's existing 10 percent standard import tariff on vehicles.
You May Also Like
According to The Financial Times, roughly 20 percent of all EVs sold in the EU last year — around 300,000 units — were manufactured in China. Tesla’s relatively low tariff rate stems from an individual review that determined the company received minimal support from the Chinese government compared to other automakers.
Tesla’s legal filing does not reveal specific details about its argument. The case against the European Commission will be heard in the General Court, the EU’s second-highest judicial body, with the possibility of appealing the verdict to the ECJ.
The entire legal process is expected to take around 18 months.
Topics Electric Vehicles Tesla Government
Chance Townsend is the General Assignments Editor at Mashable, covering tech, video games, dating apps, digital culture, and whatever else comes his way. He has a Master's in Journalism from the University of North Texas and is a proud orange cat father. His writing has also appeared in PC Mag and Mother Jones.
In his free time, he cooks, loves to sleep, and greatly enjoys Detroit sports. If you have any tips or want to talk shop about the Lions, you can reach out to him on Bluesky @offbrandchance.bsky.social or by email at [email protected].
