Tesla Hits Brussels With Lawsuit Over Tariffs On Made-In-China EVs

Elon Musk’s Tesla filed a lawsuit against the European Commission in Luxembourg, challenging tariffs imposed on imported made-in-China electric vehicles. The lawsuit marks the latest friction between Musk and Brussels, further intensifying tensions following his public support for Germany’s AfD party that has infuriated EU progressives. 

Financial Times reports that the European Court of Justice published confirmation of a lawsuit filed by Tesla’s Shanghai subsidiary on its website early Monday. No further details were provided about the lawsuit, which follows similar claims filed by Germany’s BMW and three Chinese automakers.

In October, the EU imposed anti-subsidy tariffs of up to 7.8% on made-in-China Teslas and as high as 35.3% on some Chinese EVs. These were in addition to the standard 10% import tariff for vehicles. 

• EU Slaps Up To 45% Tariff On Chinese-Made EVs As “Economic Cold War” Risks Soar

The European Commission, the bloc’s executive arm, concluded its anti-subsidy investigation into Chinese imports of EVs in 2024. The findings showed China’s unfair support for its EV industry, which could produce cheaper EVs than EU automakers. The duties enacted would be active for five years. 

Transport and Environment data shows that Tesla accounted for 28% of the Chinese-made EVs imported into Europe in 2023. 

Tesla received the lowest tariff rate among all other EV importers because Beijing provided it with the least financial support. 

BMW wrote in a statement that EU tariffs on imported EVs ”do not strengthen the competitiveness of European manufacturers,” but instead “harm business model of globally active companies” and “limit the supply of e-cars to European customers and can therefore even slow down decarbonization in the transport sector.”

BMW considers it “preferable that a political agreement be sought through negotiation. As stated before, it is important to avoid a trade conflict that only has losers in the end.”

Meanwhile, Tesla’s lawsuit against the bloc complicates things for Musk as he made a recent surprise address at the campaign launch for Germany’s Alternative for Germany (AfD) party. 

The timing of Musk’s support for the AfD and Tesla’s tariff dispute with Brussels highlights the growing tension between the world’s richest man and the woke progressives running the bloc.