Tesla joins BMW, Chinese producers' challenge on EU electric vehicle tariffs

BRUSSELS (CN) — Tesla and German carmaker BMW — which both manufacture electric vehicles in China — are challenging EU-imposed tariffs on electric vehicles made in China, the European Commission announced Monday.

The decision could deepen the feud between Brussels and Elon Musk, a close ally and adviser of U.S. President Donald Trump, after the commission earlier this month expanded its investigation into the billionaire’s social media platform X over a potential breach of EU rules on content moderation.

According to the challenge filed at the Court of Justice of the European Union, Tesla joined BMW and Chinese electric vehicle makers BYD, Geely and SAIC, and the industry group China Chamber of Commerce for Import and Export of Machinery and Electronic Products, which had already filed a complaint.

Tesla’s complaint was submitted to the bloc’s second-highest General Court last Wednesday, the deadline for filing challenges. The verdict can be appealed again to the EU’s highest court, but the process could take up to 18 months.

Besides Monday’s announcement, no further details were given.

“We take note of these cases, and we’re prepared to defend our case in court as necessary,” European Commission spokesperson Olof Gill told reporters in Brussels.

The EU imposed extra tariffs of up to 35% on Chinese-manufactured EVs in October after an anti-subsidy investigation found Chinese state support was unfairly undercutting European automakers.

Next to Chinese carmakers, the rate for Tesla under the EU tariff scheme was set at 7.8% in addition to the 10% already in place for EV imports from China, while BMW’s imports were hit with a 20.7% duty.

Tesla’s Model 3 is produced in its Shanghai factory and exported to Europe.

Five European member states, including Europe’s biggest car maker, Germany, have led the charge against the EU executive’s measures against China, mostly fearing retaliation against its own carmakers.

Amid the deepening rift, European carmaker executives and EU officials are expected to discuss the sector’s troubles on Thursday as part of talks under a new initiative chaired by European Commission President Ursula von der Leyen.

The strategic talks, scheduled for Jan. 30, are aimed at finding ways for Europe to address the declining competitiveness of its automotive industry, a sector that employs over 13 million people and contributes approximately 7% to the bloc’s overall GDP.