The European Commission is preparing to impose countervailing duties on plug-in hybrid vehicles (PHEVs) imported from China, according to a report by German newspaper Handelsblatt, as Brussels seeks to address what it sees as a regulatory gap in its trade measures against Chinese automakers.
The move would expand the European Union’s trade actions beyond battery-electric vehicles (BEVs), which have faced additional tariffs since October 2024 following an EU investigation into Chinese state subsidies.
Existing Tariffs Target Battery-Electric Vehicles
The EU introduced additional duties on Chinese-made battery-electric vehicles on October 31, 2024, after concluding that government support provided to Chinese manufacturers distorted competition in the European market.
The tariffs were applied on top of the bloc’s standard 10% import duty and vary by manufacturer. BYD faces an additional 17% tariff, bringing its total duty to 27%, while Geely is subject to a combined tariff of 28.8%. SAIC, the parent company of MG, faces the highest rate at 45.3%, including the standard import duty.
The measures were designed specifically for battery-electric vehicles, leaving plug-in hybrids outside the scope of the additional anti-subsidy tariffs.
Chinese Automakers Increase Focus on PHEVs
Since the introduction of the tariffs, several Chinese brands have expanded their plug-in hybrid offerings in Europe, benefiting from the lower import costs associated with PHEVs.
Unlike battery-electric vehicles, plug-in hybrids currently face only the standard 10% EU import tariff.
The shift has been particularly visible at BYD. In May 2026, the company said it became Germany’s best-selling plug-in hybrid brand for the first time, registering 4,290 vehicles during the month.
Among its strongest-performing models were the Atto 2 DM-i compact SUV, which recorded 2,113 registrations, followed by the Seal U DM-i SUV and the Seal 6 DM-i Touring estate.
BYD has also broadened its hybrid lineup with the introduction of the Dolphin G DM-i. According to registration data cited in the report, approximately 70% of BYD’s new vehicle registrations in Germany were plug-in hybrids, compared with 30% battery-electric vehicles.
Brussels Seeks to Close Regulatory Gap
The European Commission is now responding to the growing volume of Chinese plug-in hybrid imports, Handelsblatt reported.
According to the newspaper, Brussels intends to introduce manufacturer-specific countervailing duties on Chinese hybrid vehicles in the coming weeks. The proposed tariffs are intended to offset the effects of subsidies granted to Chinese automakers.
The report said an anti-subsidy investigation is already underway and that EU leaders were expected to discuss the matter during a summit on Thursday. The outcome of those deliberations was not immediately known.
The reported policy shift would mark a change from the Commission’s position earlier this year, when officials denied plans to extend tariffs to Chinese hybrid vehicles.
Tariffs Expected to Vary by Manufacturer
As with the existing measures on battery-electric vehicles, any new duties on plug-in hybrids are expected to be tailored to individual manufacturers.
However, Handelsblatt reported that the tariff rates are likely to be lower on average than those imposed on fully electric vehicles, partly because batteries account for a smaller proportion of the value of plug-in hybrid models.
If implemented, the measures would further intensify trade tensions between Brussels and Beijing while potentially reshaping the competitive landscape for Chinese automakers seeking growth in the European market.