The European Commission is reportedly considering extending tariffs on imported Chinese electric vehicles (EVs) to include hybrid models.
The report comes just days after a compromise appeared to have been reached, with the EU issuing guidance on “price undertaking” offers to replace the high tariffs on Chinese EV imports.
Citing a source familiar with the office of Stéphane Séjourné, former French Foreign Affairs Minister and current Executive VP for Prosperity & Industrial Strategy at the European Commission, the outlet Euractiv reported that he “raised the question of Chinese hybrid vehicles at numerous occasions.”
Trade Talks
In late 2024, the EU imposed tariffs on imported Chinese fully electric vehicles — with rates varying by automaker — following an investigation that found Chinese subsidies gave them an unfair advantage over other manufacturers.
After a year of trade talks, which resumed amid rising global tensions following US tariff announcements last April, the EU appeared willing to consider China’s proposal to set a minimum vehicle price.
In the final weeks of 2024, China reportedly offered to ensure its EVs imported to the EU would not be sold for less than around €30,000, aiming to avoid the tariffs.
The European Commission ultimately rejected the proposal, saying it did not sufficiently offset the distorting effects of the subsidies.
While Beijing and Chinese EV makers welcomed the most recent move, Brussels has cautioned that issuing this guidance does not mean the EU will lift EV tariffs.
Hybrids to Be Included?
According to the latest report, Séjourné, a French politician who is one of the six executive VPs in the Commission, has “raised the question of Chinese hybrid vehicles at numerous occasions.”
“His cabinet is raising the issue of why what is valid for EVs, is not for hybrid vehicles, that are produced in the same conditions and whose European competitors need the same protection and level-playing field,” the source told Euractiv.
According to Dataforce, published by The Economist in mid-December, registrations of Chinese hybrid vehicles have surged 155% in the past year.
Additionally, Chinese brands accounted for 13% of the continent’s hybrid-vehicle sales in November, placing 10 percentage points above the same period in 2024.
Electric vehicle sales, on the other hand, saw a 12% increase year over year. However, the market share totalled about 12.8%, nearly the same as in the hybrid segment.
On top of the baseline duty of 10%, BYD faces an additional 17%, Geely 18.8% and SAIC Motor — which owns MG —35.3%.
Other cooperating brands, such as Nio and XPeng, are subject to a 20.7% extra tariff.
North America
This week, Canada’s Prime Minister Mark Carney travelled to China, where he met with the government and President Xi Jinping.
Carney announced on Friday that the country is going to allow up to 49,000 Chinese EVs to enter the country annually at a reduced tariff rate of 6.1%.
The decision was seen as controversial and has garnered negative reactions from both internal and external representatives.
Doug Ford, Premier of Ontario, where most of the auto industry is concentrated in Canada, said the deal will give China a “foothold in the Canadian market.”
US Trade Representative Jamieson Greer further called the move “problematic.”
The United States, which imposes 100% tariffs on Chinese electric vehicles that effectively block them from entering the market, has been actively opposing their entry into North America.
Earlier this week, commenting on the possibility of allowing Chinese automakers in, Trump said that “in Europe, China’s taking over the auto business. I wouldn’t say it’s a nice statement, but that’s the way it is.”
