Tesla and BMW sue EU over tariffs on electric vehicles from China, joining Chinese automakers that filed claims. Read more.

BMW’s Chinese-made BEVs now incur EU import tariffs of close to 21%, while for BYD’ Auto the tariff rate is set at 17%; Geely 19%; and SAIC Motor 35%. Olof Gill, spokesperson for the European Commission (EC), confirmed earlier this week that the EU is prepared to respond to the case in court.

Tesla's legal challenge is in response to the EU introducing tariffs at the end of October of 7.8 percent on Tesla's China-made vehicles. The bloc has also set tariffs of up to 35.3 percent on other China-made EVs. The new tariffs come on top of a 10 percent standard import tariff that was already in place for electric vehicle imports into the EU.

Five years of rapid European growth for Chinese electric-car manufacturers ground to a halt in 2024, as trade barriers added to the challenge of building up sales in a stagnant market.Most Read from B

The European automotive industry faces rising tensions as BMW and Tesla Shanghai file lawsuits against the European Commission

Tesla is challenging the European Union in court over the tariffs imposed on its Chinese electric vehicles despite getting

Manufacturers in China have found workarounds, and experts say that could be a lesson for U.S. policymakers. Export data released last week show EV exports from China to the European Union increased 8.3% year-over-year, a reversal of the approximately 40% and 25% plunges the measurement took in October and November, respectively.

The EU Commission had imposed duty rates on Chinese-made EVs in a bid to encourage domestic manufacturing. Tesla was subjected to the lowest rate of 7.8%, while other automakers such as SAIC Motor faced tariffs as high as 35%. These rates are in addition to a 10% standard import tariff.

Both BMW and Tesla have been hit with tariffs by the EU on imports of electric vehicles made in China, along with other Chinese manufacturers such as BYD and SAIC. View on euronews