Tesla and BMW are taking the European Union (EU) to court over new tariffs on electric vehicles (EVs) made in China.
The EU recently added extra taxes on Chinese-made EVs, with rates as high as 45%, saying China unfairly supports its car industry with subsidies. Tesla and BMW, which both make cars in China for the European market, argue these tariffs hurt their business and could slow down Europe’s shift to cleaner transportation, reports Bloomberg.
The EU’s General Court confirmed the lawsuits but didn’t share details about the cases. Tesla didn’t comment on the lawsuit yet.
BMW, however, released a statement saying the tariffs “do not strengthen the competitiveness of European manufacturers” and could “limit the supply of e-cars to European customers,” making it harder to reduce carbon emissions in the transport sector.
BMW also said it would prefer a negotiated solution. The EU has been trying to reach a deal with China to replace the tariffs, but so far, talks haven’t made much progress.
The new tariffs came after an EU investigation found China was unfairly supporting its EV industry. In October, the EU voted to add these extra fees on top of an existing 10% import tax. Tesla now faces a 7.8% extra charge, while BMW’s imports are hit with a 20.7% duty. BMW is affected because it makes its electric Mini Cooper and Mini Aceman models in China.
Chinese carmaker MG, owned by state-backed SAIC, was hit the hardest with a 45% tariff. MG, once the top-selling Chinese brand in Europe, has seen a big drop in sales recently, with registrations falling 58% in November.
The EU says it’s ready to defend the tariffs in court. “We’re prepared to defend our case in court as necessary,” said Olof Gill, a spokesperson for the European Commission.
