According to a report by German newspaper Handelsblatt on June 19, senior EU officials and industry insiders revealed that the EU is preparing to impose countervailing duties on Chinese-produced plug-in hybrid electric vehicles (PHEVs).
According to the report, three informed sources stated that the relevant preparations are already in place, and once approved by a majority of EU member states, the European Commission can immediately impose the tariffs.
On June 18, EU leaders discussed new and tougher measures that may need to be taken to curb the EU’s growing trade deficit with China, as well as the EU’s heavy reliance on Chinese rare earths and other critical materials.
Handelsblatt reported that the European Commission aims to impose additional countervailing duties on hybrid vehicles produced by Chinese manufacturers such as BYD, Chery, and SAIC.
Since 2024, the EU has imposed additional countervailing duties on Chinese battery electric vehicles (BEVs), with rates ranging from approximately 7.8% to 35.3%, on top of the basic 10% tariff. Hybrid vehicles were previously not covered.
