After U.S. electric vehicle maker Tesla, German BMW has also taken legal action against the European Union (EU) for imposing high tariffs on Chinese electric vehicles.
According to Bloomberg on the 27th (local time), Tesla and BMW filed a lawsuit against the European Commission, which acts as the EU's executive body, at the EU General Court in Luxembourg last week. This was to nullify the high tariffs imposed on Chinese electric vehicles in October last year.
BMW pointed out in a statement that the EU's high tariffs do not strengthen the competitiveness of European manufacturers but rather harm the business models of globally active corporations and can delay the decarbonization of transportation by limiting the supply of electric vehicles to European customers.
BMW further emphasized, "I think it is desirable to find a political agreement through negotiations," adding, "It is important to avoid a trade dispute that ultimately leaves only losers."
Previously, the EU Commission decided to impose an additional countervailing tariff of 7.8 to 35.3 percentage points on top of the existing 10% general tariff, citing that cheap Chinese electric vehicles receiving 'unfair' subsidies from Chinese authorities disrupt the European market. Consequently, the tariff rate on Chinese electric vehicles increased from a minimum of 17.8% to a maximum of 45.3% since October last year.
According to the level of subsidies investigated by the Commission, Tesla manufactured at the Shanghai factory faces the lowest tariff of 17.8%, while BMW is subjected to a tariff of 30.7%. In addition to them, three Chinese electric vehicle companies — BYD, Geely, and Shanghai Automotive Industry Corporation — also face tariffs of 27.0%, 28.8%, and 45.3%, respectively. These three Chinese companies also filed a lawsuit against the EU Commission on the 21st.
Olaf Schilf, spokesperson for trade affairs at the EU Commission, commented on the lawsuits by Tesla and BMW to Bloomberg, "We are ready to defend our position in court if necessary."