The European Commission is preparing possible safeguard measures to restrict imports of China-made hybrid vehicles, Bloomberg reported, citing people familiar with the discussions. One option is a tariff-rate quota, under which imports above a specified volume would face additional duties. The measures would be temporary, but no quota levels, tariff rates or start date have been disclosed, and the plans could change.
The EU is considering hybrids as a test case for efforts to rebalance trade with China. If the approach is deemed effective, the bloc could consider similar tools in other sectors. The reported preparations follow a rise in Chinese hybrid sales in Europe: imports increased from 3,800 vehicles in October 2024 to 50,000 in July 2026, while average prices fell, according to figures cited by the Financial Times. Chinese brands accounted for nearly 12% of Europe’s new-car market in August and about one-third of its plug-in hybrid sales, Bloomberg reported.
The issue adds to tensions after the EU imposed definitive countervailing duties on Chinese-made battery-electric vehicles in October 2024, but has not applied equivalent additional duties to hybrids. The EU had previously sought voluntary limits on Chinese hybrid exports; China’s Commerce Ministry objected in September, arguing that such restraints would violate WTO rules. EU Trade Commissioner Maros Sefcovic is due to meet Chinese Commerce Minister Wang Wentao in Beijing later this week. EU leaders are also set to discuss China trade in mid-October, as the Commission prepares measures to address trade imbalances by year-end.