By DCB Editorial, January 29, 2025
Tesla is joining automakers such as BYD, SAIC, Mercedes, BMW and Geely in a legal challenge against the European Union over tariffs imposed on Chinese-built electric vehicles (EVs). Tesla’s Gigafactory in Shanghai produces cars for both the domestic and export markets, with Europe being a key destination.
In an effort to protect domestic manufacturing, the EU has imposed tariffs on foreign-made EVs, with Tesla’s vehicles facing an 8% duty, while others, like SAIC, are hit with 35% tariffs. The EU Commission’s year-long anti-subsidy investigation claims that Beijing has heavily subsidized the Chinese EV industry, boosting its global position.
This has led to heightened tensions, with the automakers seeking to overturn the tariffs and recover losses. The China Chamber of Commerce for the Import and Export of Machinery and Electronics (CCCME) has also filed a case.
EU trade spokesperson Olof Gill stated that the Union is ready to defend its position in court.
