EU Advances Two Auto Trade Tracks: Chinese Hybrid Limits, UK-EU EV Tariffs Delayed Three Years
In September 2026, the EU combined pressure and buffering in its auto trade with China. The EU asked China to voluntarily limit hybrid vehicle exports, aiming to cap their European share at about 15%, while the share of Chinese-brand PHEVs has already exceeded one-third. The EU said last year's goods trade deficit with China reached 360.6 billion euros and widened by another 9% in the first half of this year. Due to insufficient domestic battery capacity, the EU proposed postponing UK-EU electric vehicle tariffs and rules of origin until 2027 and investing 3 billion euros to boost battery capacity. Neither track has yet been implemented, and Chinese automakers in Europe face constraints from share management and tightening localization rules.
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