Tesla takes EU to court over tariffs on EVs made in China
Tesla takes EU to court over tariffs on EVs made in China
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Elon Musk’s company still imports large number of cars into Europe from its Shanghai factory. Tesla has filed a complaint against the European Commission after the imposition of tariffs by the bloc on its Chinese-made electric vehicles. The EU announced its decision to impose tariffs on all imports of Chinese electric cars in June, alleging that the Chinese government had provided unfair state subsidies to manufacturers in order to win a dominant position in the emerging industry. EU leaders approved the tariffs in October.
Records at the website of the European Court of Justice showed that Tesla (Shanghai) filed its case at the commission at the court last Wednesday. It gave no more information. Tesla, led by the chief executive, Elon Musk, makes cars in Berlin, as well as in its home US market. However, it still imports a large number of cars into Europe from its Shanghai factory, leaving it exposed to tariffs. The carmaker is due to pay significantly lower tariffs at 7.8% than some competitors, who will face up to 35.3%.
The case will mean that the main company controlled by Musk will be fighting a legal case against the EU at the same time as the billionaire serves as one of the most prominent financial backers of Donald Trump. Musk, who was the biggest individual donor to Trump’s election campaign, has been appointed to run a new advisory Department of Government Efficiency, also referred to as Doge, after a meme featuring a shiba inu dog.
Musk has in the past year become a vocal critic of the EU – criticising the commission as “undemocratic” – and individual member state governments. Most notably, on Saturday he appeared via video link at a campaign event for the Alternative für Deutschland, a far-right political party in Germany.
