EU prepares additional tariffs on Chinese plug‑in hybrid cars

The European Commission is reviewing the possibility of extending anti‑subsidy duties to plug‑in hybrid vehicles (PHEVs) imported from China. The move would follow the existing compensatory tariffs on fully electric cars, which combine a 10 % base duty with higher rates for manufacturers such as BYD (17 %), Geely (18.8 %) and SAIC (35.3 %). The new measures would require approval from a majority of EU member states before being activated.

Chinese firms are responding by shifting production to Europe – BYD is building a plant in Szeged, Hungary, and Chery plans assembly in a former Nissan factory in Barcelona – to avoid the import duties. Analysts warn that any EU levy on PHEVs could raise retail prices for consumers and give a competitive edge to European carmakers. PHEV registrations are booming in the bloc, with 364,067 units recorded in the first four months of the year, representing 9.6 % of new vehicle registrations.

The proposal, reported by Reuters and cited from Handelsblatt, signals a broader effort by Brussels to balance trade relations with Beijing and protect the EU automotive sector from perceived unfair subsidies.