Tesla has launched a legal challenge against the European Union over tariffs imposed on Chinese-made electric vehicles, according to court records.
The American automaker lodged its complaint at the General Court, the lower chamber of the European Court of Justice.
The case opens a new front in Brussels’ tensions with Tesla CEO Elon Musk, who has become increasingly critical of the European Union.
The bloc announced the tariffs on Chinese electric vehicles in June, claiming that Chinese manufacturers had received unfair state subsidies to dominate the emerging industry.
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Tesla is launching a legal challenge against the European Union in response to tariffs on Chinese EV companies
REUTERS
EU leaders approved the measures in October, setting varying rates for different manufacturers including BYD, Geely and SAIC.
Tesla faces a tariff rate of 7.8 per cent, significantly lower than some competitors who will be charged up to 35.3 per cent.
The decision reflects growing concerns in Brussels about China’s influence in the European automotive sector.
While Tesla operates a manufacturing facility in Berlin and produces vehicles in its home US market, it continues to import a substantial number of cars from its Shanghai factory into Europe.
This manufacturing setup means the company remains exposed to the new EU tariffs on its Chinese-made vehicles.
The tariffs come at a time when German carmakers with joint ventures in China have also voiced opposition to the measures, arguing instead for free trade to maintain access to the Chinese market.
BMW has joined Tesla in challenging the EU tariffs, filing its own complaint at the European court, Reuters reported.
Chinese electric vehicle manufacturers BYD, Geely and SAIC have also launched legal challenges against the measures. The Chinese Chamber of Commerce (CCCME) has similarly contested the EU’s import tariffs.
These challenges reflect growing opposition to the EU’s protectionist measures from both European and Chinese manufacturers in the automotive sector.
Musk’s legal battle with the EU comes as he maintains close ties with Donald Trump, serving as the former president’s biggest individual campaign donor.
Musk has become increasingly vocal in his criticism of the EU, calling the commission “undemocratic” and recently appearing via video link at a campaign event for the far-right German party Alternative für Deutschland (AfD).
According to Reuters, the legal proceedings at the General Court are expected to last approximately 18 months on average. Any decisions can be appealed to a higher chamber of the Court of Justice of the European Union.
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Tesla produces many of its electric vehicles at its factory in Shanghai, China
REUTERS
A successful appeal against the EU tariffs could potentially benefit Chinese manufacturers, despite Musk’s support for Trump, who has pledged steep tariffs on Chinese exports to the US.
