The European Union (EU) is preparing safeguard measures that could cap imports of China-made hybrid vehicles following a surge in European sales, Bloomberg reported. The European Commission is considering tariff-rate quotas, which would apply a levy to imports above a specified volume.
The proposed safeguards would be time-limited. Specific quota volumes, tariff rates and an implementation date were not disclosed, and the plans could still change. EU Trade Commissioner Maros Sefcovic is expected to travel to Beijing later this week for talks with Chinese Commerce Minister Wang Wentao, with the outcome potentially influencing the measures.
The commission reportedly intends to use hybrid vehicles as a test case for its trade rebalancing efforts. If the measures are considered successful, the approach could be extended to other sectors where the EU sees trade imbalances. The bloc’s trade deficit with China exceeds €1 billion per day, according to Bloomberg.
The EU previously sought voluntary export restraints from China on hybrid vehicles. China’s Commerce Ministry said on September 18 that such restraints would violate World Trade Organization rules and conflict with market principles and fair competition. The ministry said any solution must balance both sides’ interests and comply with WTO rules and their respective domestic laws.
China-made hybrids currently face no additional duties equivalent to those applied to battery electric vehicles. In October 2024, the EU imposed definitive countervailing duties on Chinese-made battery electric vehicles for 5 years. The additional rates ranged from 7.8% to 35.3%, bringing the highest total tariff, including the standard 10% import duty, to 45.3%.
EU imports of hybrids from China increased from 3,800 vehicles in October 2024 to 50,000 in July 2026, while average prices declined. Chinese brands captured nearly 12% of Europe’s new-car market in August and accounted for roughly 1 in 3 plug-in hybrid sales, according to Bloomberg. EU leaders are expected to discuss China trade relations and possible new measures in mid-October.
EU Plans Hybrid Curbs After China Imports Hit 50,000
EU imports of China-made hybrids surged as Brussels prepares time-limited safeguards, potentially using tariff-rate quotas above an undisclosed volume.
Neutral rows show the October 2024 BEV tariff stack; the September 17 report drew Chinese opposition on September 18.
Source: CnEVPost
