Tesla and BMW are now taking the EU to court to get it to drop the Chinese punitive tariffs. Both brands have massive production in the country.
Tesla and BMW are suing the EU over punitive tariffs on electric cars made in China, joining a number of Chinese companies, including BYD, SAIC and Volvo owner Geely, that have already filed lawsuits against the European Commission.
The case concerns the EU's decision to impose a punitive tariff of up to 35 percent on electric cars from China, on top of the regular tariff of 10 percent. Both Tesla and BMW have significant production of electric cars in China, which they export to the EU.
According to the Financial Times, the two automakers have now filed an appeal with the European Court of Justice in an attempt to have the punitive duties overturned. However, it could take up to 18 months for the court to hear the appeal case.
Meanwhile, it may turn out that Chinese exports of electric cars continue to decline. The latest figures from the China Association of Automobile Manufacturers conclude that the country's exports of electric cars in particular have turned completely upside down.
From having increased by 83 percent in 2023, the Chinese are now exporting a full 10 percent fewer electric cars compared to 2023.
The punitive tariffs, which the EU adopted last year but has since adjusted down several times, are currently in force five times. The government in Beijing has responded again with a threat of tariffs on all European cars with an internal combustion engine larger than two liters in displacement.
