The EU has indicated a policy of imposing safeguards on China-made HVs/PHVs from December, while discussions are also advancing on excluding Japanese vehicles from subsidy eligibility in combination with the existing tariff preferences for EVs.
The EU has announced that it will impose safeguards (emergency import restrictions) on China-made hybrid vehicles (HVs) and plug-in hybrid vehicles (PHVs) from December. It had already introduced measures under which China-made EVs would be subject to an additional tariff of up to 35.3% on top of the 10% basic tariff from November 2024.
The aim is to strengthen restrictions on HV and PHV imports while allowing a four-year easing period. Imports are expected to be limited to 800,000 units in 2026 and 350,000 units in 2027. An estimate has been presented under which imports of up to 420,000 units will ultimately be permitted by 2030, with consideration also given to exempting products manufactured within the EU.
While Japanese manufacturers may regard the impact of these measures as “someone else’s problem,” Germany and France have already reached a political agreement not to provide purchase subsidies for electric vehicles other than those produced within the EU, increasing the likelihood that electric vehicles exported from Japan will be excluded from subsidy eligibility.
The EU’s formal decision as a whole has not yet been finalised, and the conditions and scope of application may change during the remaining discussions.