Tesla, BMW Sue European Government For Tariffs

Image via Tesla

There’s been considerable talk lately of a tariff war brewing, but some shots have already been fired by the European Union with both Tesla and BMW in turn suing. That’s right, the German and American automakers have both filed suit against the European Commission because of tariffs levied against their cars.

Watch a Corvette driver push it and instantly wreck big time.

The tariffs are actually for any electric vehicle manufactured in China and those two brands just happen to assemble a significant number there for the European market. It’s unclear what the outcome of the lawsuits might be, but it could impact the market and even shift where different car models are made.

It was last year when the European Union slapped a 7.8 percent tariff on EVs coming out of China that are Teslas. BMW electric cars were hit harder with a 20.7 percent tariff. The automakers have a tough choice: eat the extra fees and lose profits or pass the costs along to consumers and risk losing sales, which also can shrink profits.

There is, of course, a third option of relocating where these EVs are assembled to within the EU’s borders. That’s costly and will take time, but likely it’s the outcome the government wants. After all, manufacturing in Europe is becoming a shadow of its former self, particularly in the automotive space.

As Euro News points out, while both Tesla and BMW have filed suit in the European Union’s Court of Justice, details about those cases haven’t been revealed to the public. That makes it hard for anyone to even begin to predict what the outcome of these legal actions might be.

Should BMW or Tesla find success in their lawsuits, the ability of the EU to impose tariffs on goods from any country might be called into question. We know the topic of tariffs is highly charged with explosive opinions abounding, so we expect these lawsuits will trigger all kinds of responses.

Image via Tesla

By Steven Symes

Steven Symes is an accomplished automotive journalist with a passion for all things related to cars. His extensive knowledge and love for the automotive world shine through in his writing, which covers a diverse range of topics.

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