Five years of rapid European growth for Chinese electric-car manufacturers ground to a halt in 2024, as trade barriers added to the challenge of building up sales in a stagnant market.Most Read from B

Tesla and BMW sue EU over tariffs on electric vehicles from China, joining Chinese automakers that filed claims. Read more.

Manufacturers in China have found workarounds, and experts say that could be a lesson for U.S. policymakers. Export data released last week show EV exports from China to the European Union increased 8.3% year-over-year, a reversal of the approximately 40% and 25% plunges the measurement took in October and November, respectively.

Tesla's legal challenge is in response to the EU introducing tariffs at the end of October of 7.8 percent on Tesla's China-made vehicles. The bloc has also set tariffs of up to 35.3 percent on other China-made EVs. The new tariffs come on top of a 10 percent standard import tariff that was already in place for electric vehicle imports into the EU.

Tesla is challenging the European Union in court over the tariffs imposed on its Chinese electric vehicles despite getting

Chinese EV makers BYD, Geely, and SAIC contested EU's import duties at Court of Justice. Tesla excluded from tariffs, gaining only 7.8% tax.

The EU Commission had imposed duty rates on Chinese-made EVs in a bid to encourage domestic manufacturing. Tesla was subjected to the lowest rate of 7.8%, while other automakers such as SAIC Motor faced tariffs as high as 35%. These rates are in addition to a 10% standard import tariff.