EU moves to impose tariffs on Chinese plug‑in hybrid cars

The European Commission is preparing a countervailing‑duty investigation that could add import tariffs on plug‑in hybrid vehicles (PHEVs) made by Chinese manufacturers such as BYD, Chery and SAIC (MG). The move is intended to close a loophole that Chinese firms have exploited after the EU introduced additional duties on battery‑electric cars (BEVs) in late 2024. The proposed duties would apply once a majority of EU member states vote in favour and would be manufacturer‑specific, likely lower than the BEV rates (e.g., an extra 17 % for BYD, 18.8 % for Geely, 35.3 % for SAIC on top of the baseline 10 % tariff). Chinese exporters have shifted heavily toward PHEVs, with imports to the EU rising sharply – early 2025 saw a roughly 892 % increase in Chinese PHEV shipments compared with the previous year. EU officials and industry groups say the tariffs aim to protect the European auto sector and address what they view as market‑distorting subsidies. The measure is being discussed alongside broader EU concerns about the trade deficit with China and the competitive pressure on European car‑making jobs.