EU prepares new tariffs on Chinese plug‑in hybrid vehicles

The European Commission is close to adopting additional duties on plug‑in hybrid (PHEV) cars made in China, aiming to close the tariff gap that has allowed these models to gain a price advantage after the EU introduced extra tariffs on fully electric Chinese cars in October 2024. The proposed measures would raise the standard 10 % import duty to rates that could reach 13 %‑30 % depending on the manufacturer, pending approval by EU member states.

Chinese manufacturers such as BYD, Chery, SAIC and Geely have used the PHEV category to boost sales in Europe, with registrations jumping 71 % in May 2026. In response, the EU argues the cars benefit from Chinese state subsidies and threaten European industry. The bloc also notes that Chinese firms are planning production within the EU – for example BYD’s plant in Hungary and Chery’s upcoming facility in Spain – to circumvent the tariffs, which are levied based on the place of manufacture rather than brand nationality.