On June 20, 2026, according to German newspaper Handelsblatt, the European Commission is planning to impose new tariffs on plug-in hybrid vehicles (PHEVs) imported from China. This means that after the EU imposed anti-subsidy duties of 17%-35.3% on Chinese BEVs in November 2024, the strategic shift of Chinese automakers from BEV to PHEV exports may also be blocked. This article analyzes the background, impact, and coping strategies of the new EU tariffs.
EU New Tariffs: From BEV to PHEV "Encirclement"
Background of Tariff Escalation
In November 2024, the EU imposed anti-subsidy duties of 17%-35.3% on Chinese BEVs, in addition to the EU's unified 10% import tariff. After this policy was introduced, Chinese automakers quickly adjusted their export strategies, shifting their strategic focus from pure electric to plug-in hybrid models.
Data shows that from 2025 to early 2026, the number of PHEV models exported by China to Europe increased significantly. BYD, Chery, SAIC and other leading automakers' plug-in hybrid models rapidly expanded their market share in Europe, becoming an important alternative after BEV restrictions.
Core Content of New Tariffs
According to Handelsblatt, citing EU senior officials and industry insiders, the European Commission has completed preparations for imposing tariffs on PHEVs:
Target: Plug-in hybrid vehicles produced by Chinese manufacturers such as BYD, Chery, and SAIC
Tariff Level: Consistent with BEV and EREV, that is, an additional maximum 35% tariff on top of the EU unified 10% import tariff
Implementation Conditions: Can be quickly launched after obtaining support from the majority of EU member states
It is worth noting that the European Commission declined to comment on this report, but signals have been released multiple times before. In January 2026, European news website Euractiv reported that the EU was considering tariffs on Chinese PHEV models.
Why is the EU Targeting Chinese PHEVs?
Pressure from Expanding Trade Deficit
EU leaders began discussing tougher trade measures on June 18, mainly due to:
The EU-China trade deficit continues to expand
The EU is highly dependent on China for rare earth and other key raw material supplies
Chinese automakers' market share in the European new energy vehicle market is rapidly increasing
Chinese Automakers' "Strategic Shift"
After BEVs were subject to anti-subsidy duties, Chinese automakers demonstrated strong market adaptability:
Product Structure Adjustment: Quickly shifted export focus from pure electric to plug-in hybrid and extended-range
Technology Route Switching: Utilized China's technological accumulation and cost advantages in the plug-in hybrid field
Accelerated Market Penetration: Rapidly expanded market share in the European plug-in hybrid market
This rapid adjustment capability has aroused high vigilance from the EU, which is seen as circumventing existing tariff measures.
Impact Analysis on Chinese Automakers
Direct Impact
Dimension | Impact Level | Specific Performance |
|---|---|---|
Export Cost | High | Comprehensive tariff may reach 45%, severely weakening price competitiveness |
Market Share | High | Growth momentum in European market share will be blocked |
Profitability | Medium-High | Profit margins are greatly compressed under high tariffs |
Strategic Layout | Medium | Forces automakers to re-evaluate European market strategy |
Indirect Impact
Accelerated Localized Production: High tariffs will force Chinese automakers to speed up factory construction in Europe
Technology Route Readjustment: May need to explore new technology routes or market strategies
Global Layout Restructuring: After European market obstacles, automakers will increase investment in other markets
Coping Strategies for Chinese Automakers
Short-term Response
Accelerate Localized Production
Promotion of BYD Hungary factory, Chery Spain factory and other projects
Avoid tariff barriers through local production
Adjust Product Structure
Develop products that better meet European market needs
Enhance product added value and strengthen non-price competitiveness
Seek Policy Breakthroughs
Strengthen communication and negotiation with the EU
Use WTO and other international mechanisms to safeguard rights
Medium and Long-term Layout
Diversified Market Strategy: Increase investment in Southeast Asia, Middle East, Latin America, Central Asia and other markets
Technology Upgrade: Continue R&D investment, enhance product technical content and brand premium
Supply Chain Restructuring: Establish a more diversified global supply chain system
Implications for Central Asia/Russia Market
For Chinese automakers targeting the Central Asian and Russian markets, the EU's new tariff policy provides important insights:
Policy Risks Need Advance Layout: Tariff barriers may appear at any time, requiring the establishment of a diversified export market portfolio
Localization is a Long-term Trend: The transformation from vehicle export to localized production is imperative
Central Asia Market Opportunity: Establish production bases in Central Asia, utilizing the Eurasian Economic Union's tariff advantages to radiate the Russian market
Conclusion
The EU's plan to impose new tariffs on Chinese PHEVs marks a new stage in China-EU automotive trade game. For Chinese automakers, this is both a challenge and a catalyst for transformation. Against the backdrop of counter-currents in globalization, Chinese automakers need to find new growth points in the global market with a more open attitude, more flexible layout, and stronger technical strength.
For the Central Asian and Russian markets, Chinese automakers should seize the current strategic opportunity window, accelerate localized layout, establish a solid market foundation, and respond to various trade barriers that may arise in the future. EX1000.COM provides more details.
