BMW Sues the EU Over Chinese EV Tariffs

[DimON]

BMW and other automakers are suing the European Union in a high-stakes legal battle, joining a growing wave of Chinese automakers challenging punishing tariffs of up to 45% on electric vehicle imports. The tariffs threaten to upend billions of dollars spent on a global production strategy that would have helped defray the enormous expense of engineering and building electric vehicles. Here are the details.

According to the EU’s General Court website, both companies filed cases against the European Commission last week, though the specifics of their claims remain unclear.

The EU’s decision to impose these tariffs came in October after an investigation found China guilty of unfairly subsidizing its EV industry. With negotiations falling flat, the EU slapped the new fees on top of the standard 10% import duty.

The Chinese made MINI Aceman

In late 2024, the European Union imposed anti-subsidy tariffs on electric vehicles (EVs) imported from China, citing concerns over unfair state support that allowed these vehicles to undercut European prices. The tariffs vary by manufacturer: Tesla faces a 7.8% duty, while Chinese companies like BYD and Geely are subject to 17% and 18.8% tariffs, respectively. State-owned SAIC, which owns the MG brand, faces the highest tariff at 35.3%. These measures aim to protect the EU’s automotive industry from subsidized competition.

BMW subsidiary MINI, which produces the electric Mini Cooper and Mini Aceman in China, is directly affected by these tariffs, facing a 20.7% duty on its China-made EVs. The company lodged its complaint at the General Court, the lower chamber of the CJEU, just before the filing deadline. Proceedings at the General Court typically last about 18 months and can be appealed.

How are these tariffs affecting automakers? A look at the MG brands is telling. MG’s parent company, the state-owned SAIC, got hit hardest with a total tariff burden at the maximum 45% level. Once Europe’s top-selling Chinese car brand, MG has seen sales drop 58% in November, per data from Jato Dynamics.

It’s unclear how this will affect MINI in the near term but based on our previous reporting, BMW will likely transition away from Chinese exports to a more regional based production strategy.

The post BMW Sues the EU Over Chinese EV Tariffs appeared first on MotoringFile.

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