Tesla has joined BMW and Chinese automakers in filing a lawsuit at the Court of Justice of the European Union (CJEU) over EU duties on EV imports from China, the Financial Times reports. The Chinese firms and BMW registered their complaints at the General Court — the lower of two CJEU chambers — last week. Proceedings at the General Court last an average of 18 months and can be appealed.
The tariffs: The EU imposed extra tariffs in October, ranging from 7.8% for Tesla to 35.3% for China’s SAIC. BMW was hit with a 20.7% increase due to its electric Mini Cooper and Mini Aceman models being made in China, Bloomberg reports.
What will the challenges address? The challenges will probably involve disputes over subsidy assessments, determining the harm to EU industry, and the Commission's uncommon choice to initiate a case independently rather than in response to an industry complaint, Reuters reported last week.
REFRESHER- The EU increased tariffs on Chinese-built EVs by up to 45.3% following the conclusion of its anti-subsidy probe back in October. The tariffs are intended to counter what the EU says are unfair Chinese subsidies for EV makers, including preferential financing and grants at below-market prices. Chinese EV brands make up some 8% of the EU market, up from less than 1% in 2019, and could reach 15% by 2025. Chinese EVs cost, on average, 20% less than EU-made models.
OTHER STORIES WORTH KNOWING THIS MORNING-
- China bans livestock imports from Africa, Asia, Europe: China, the world’s largest meat importer, banned imports of processed and unprocessed livestock products, including sheep, goat, poultry, and even-toed ungulates from countries in Africa, Asia, and Europe, due to outbreaks of livestock diseases. (Reuters)