Media outlet Euractiv reported last week that the European Commission was considering extending tariffs on Chinese imported vehicles to include hybrid models.
However, the EU trade spokesman Olof Gill clarified on Tuesday that, on behalf of the European Commission, “there is no ongoing investigation into exports of hybrid vehicles from China to the European Union.”
The statements were made during a press conference in Brussels.
Euroactiv’s Report
According to last week’s report, Stéphane Séjourné — former French Foreign Affairs Minister and currently one of the six VPs of the European Commission — had “raised the question of Chinese hybrid vehicles on numerous occasions.”
Séjourné’s office flagged that both hybrid and electric vehicles were “produced in the same conditions” and that “European competitors need the same protection and level-playing field.”
Referring to the earlier report, the EU spokesman added that “the commissioners are politicians and have the right to raise whatever issues they want.”
Olof further clarified that the investigation carried out in 2024 focused “solely” on electric vehicles.
That probe was a necessary prerequisite before taking any tariff measures, as established by the rules of the World Trade Organization (WTO).
By then, the bloc identified the electric battery sector with a “trade pattern that could pose a threat to the European Union’s industry.”
Trade Scenario
In late 2024, the EU imposed tariffs on imported Chinese fully electric vehicles following an investigation that found Chinese subsidies gave them an unfair advantage over other manufacturers.
On top of the baseline duty of 10% on imports, 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.
The two blocs resumed trake talks last year, amid rising global tensions following US tariff announcements last April.
Last week, 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.
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.
US Tariffs
The European Union is now in a trade dispute with the United States, after Trump announced a new round of tariffs on several countries.
The US Administration announced over the weekend that it would impose a 25% levy on EU members Denmark, Finland, France, Germany, the Netherlands, and Sweden, plus the UK and Norway.
The measures were imposed over a political issue involving Denmark’s autonomous territory, Greenland.
Additionally, Trump fired back at French President Emmanuel Macron on Monday by suggesting a 200% tariff on French wines and champagne.
The comments were made after reports that Macron was declining his invitation to join the Board of Peace initiative, aimed at resolving global conflicts.
When asked about Macron’s stance, Trump said, “Did he say that? Well, nobody wants him because he will be out of office very soon.”
“I’ll put a 200% tariff on his wines and champagnes, and he’ll join, but he doesn’t have to join,” he stated.
Over the weekend, Macron urged the implementation of the EU anti-coercion mechanism on the United States.
The anti-coercion mechanism was created in 2023.
While it was never activated, it would impose restrictions on imports from and exports to the US, and limit American companies’ access to public procurement contracts in Europe.
US Treasury Secretary Scott Bessent said on Tuesday that European countries are not considering counter-tariffs, despite recent media reports suggesting otherwise.
“This is a false narrative. There is no talk in European governments,” Bessent stated, urging people to “take a deep breath, let this play out and do not listen to the media hysteria.”
