Tesla goes after EU for tariffs on its Chinese EVs despite getting lowest rates

Tesla is challenging the European Union in court over the tariffs imposed on its Chinese electric vehicles despite getting the lowest rates of any automaker.

Last summer, the European Commission revealed new tariff rates on Chinese-made EVs imported into the continent. The logic behind the tariffs was that the EU sees China as subsidizing electric vehicle production and exports, resulting in the EVs being too competitive against European-made EVs.

Automakers were given varying levels of tariffs, between 7 and 36%.

Tesla, which also produces vehicles in Europe, was awarded the lowest rate for Chinese vehicles it imports into Europe.

Now, Tesla has joined a few other automakers in challenging the tariffs in court (via Reuters):

The court document showed the U.S. automaker lodged its complaint at the General Court, the lower of two CJEU chambers, last Wednesday, the deadline for filing challenges. Proceedings at the General Court last on average 18 months and can be appealed.

BMW, BYD, Geely, and SAIC, are also challenging European tariffs on their Chinese EVs.

Tesla also asked the Canadian government to reduce tariffs on its Chinese EVs. The Canadian government, like the US, has imposed 100% tariffs on electric vehicles made in China.

The US is the only place where Tesla has not challenged tariffs, as it doesn’t attempt to sell Chinese EVs in its home market.

Electrek’s Take

Things could get interesting here. With Trump looking to impose tariffs on everyone, it could shake up some markets.

For example, if he follows through with his Canadian tariffs, Canada will retaliate. All US-made EVs would become more expensive in Canada, which might make them reconsider tariffs on Chinese EVs, potentially opening the door for Chinese automakers to enter the market.