EU prepares countervailing tariffs on Chinese plug-in hybrid cars
Chinese carmakers' fastest-growing EU loophole is closing. The European Commission is preparing countervailing tariffs on plug-in hybrids from makers like BYD $BYDDY, Chery and SAIC, with a member-state vote expected within weeks.
European trade policy is moving to close a gap that Chinese carmakers have used to keep growing in the EU. The European Commission is preparing countervailing tariffs on plug-in hybrid vehicles from Chinese manufacturers, with member states expected to vote in the coming weeks, according to a Handelsblatt report. The background matters. Since late 2024 the EU has imposed extra tariffs on battery-electric vehicles from China, with duties reaching as high as 45%. Plug-in hybrids, however, remained subject only to the standard 10% import duty. Chinese brands responded by pushing hybrid models into the European market, and the shift paid off: BYD $BYDDY reported becoming Germany's best-selling plug-in hybrid brand for the first time in May 2026. The Commission's move targets makers including BYD, Chery and SAIC. For European manufacturers, the proposed duties would narrow a pricing advantage that has helped Chinese rivals expand share. For consumers, they could mean higher prices on a category that has been growing quickly. The decision now rests with member states, which have split before over how hard to push back against Beijing on trade.