The great EV Tariff Saga is back in action, and things are heating up! Last week, whispers of legal battles were swirling, with three major Chinese EV players taking the European Union (EU) to court over its hefty tariffs.
But wait—there’s more drama! It’s now official: Tesla and BMW have joined the fray, filing their own lawsuits against the EU’s tariff scheme at the Court of Justice of the European Union (CJEU).
BMW, Tesla, and Tariff Troubles
The news dropped yesterday (27 January), with Olof Gill, spokesperson for the European Commission, confirming that the EU is gearing up to defend itself in court. And let’s be real, this legal battle is shaping up to be a heavyweight clash.
So, what’s the deal? Under the EU’s tariff rules, Tesla—despite being an American brand—faces a 7.8% duty on its Chinese-made vehicles after requesting a special review.
For BMW, the situation is even stickier. The German giant produces the Electric Mini Cooper and Mini Aceman in China, which are now slapped with a whopping 20.7% tariff. Ouch.
Meanwhile, the big Chinese manufacturers aren’t exactly getting off lightly either:
- BYD: 17%
- Geely: 18.8%
- SAIC: A jaw-dropping 35.3%!
BMW’s Plans Take a Hit
BMW’s got big dreams of leading the EV revolution, but these tariffs are throwing a serious wrench in the works.
The added costs make it tougher for them to compete in the European market, which is key to their plan for promoting greener transportation.
But BMW isn’t backing down. Along with its Chinese partners, the company plans to fight the good fight, pushing for a reduction—or outright removal—of these tariffs.
It’s going to be a long haul, with the legal process expected to stretch over 18 months, appeals and all. During this time, BMW will keep championing fair competition and highlighting the benefits of EVs for both consumers and the environment.
China vs. the EU – The Bigger Picture
This isn’t just about BMW and Tesla, though. The showdown began when China filed a complaint with the World Trade Organization (WTO) back in November, challenging the EU’s countervailing measures against Chinese EVs.
Despite pushback from some EU member states, the European Commission moved forward with its plans in October, slapping tariffs on Chinese EV imports.
What’s Next?
With Tesla, BMW, and the Chinese automakers all taking their fight to court, this tariff battle is set to dominate the EV world for the foreseeable future.
The stakes are sky-high—not just for the companies involved but for the future of fair competition and greener tech in the automotive industry.
Source: The Star, The Economic Times
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