Tesla sues EU over tariffs on electric vehicles

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Tesla sues EU over tariffs on electric vehicles

Tesla has filed a lawsuit against the European Union at the European Court of Justice (ECJ), challenging anti-subsidy tariffs imposed on imports of electric vehicles (EVs) from China.

The ECJ confirmed the case on its website Monday but did not provide further details about Tesla’s claim. The lawsuit, filed by Tesla’s Chinese subsidiary, follows legal challenges brought by Chinese automakers BYD, Geely, and SAIC over similar tariffs.

Background on EU Tariffs

The European Commission imposed provisional countervailing duties ranging from 17.4% to 37.6% on Chinese-made EV imports in July 2023, later adjusting these rates. Tesla’s Chinese exports were assigned an 8% duty rate, while rates for major Chinese manufacturers ranged from 17% for BYD to 36.3% for SAIC.

The tariffs are meant to address what the EU considers unfair state subsidies in China that allow Chinese EV makers to sell vehicles at artificially low prices. These duties are in addition to the EU’s standard 10% import tariff for EVs.