The European Union is planning to impose tariffs on imports of Chinese hybrid cars in an effort to reduce the trade deficit with Beijing, which exceeds €1 billion per day, according to Bloomberg.

The European Commission's decision could serve as a pilot project for other industries, but the final decision depends on negotiations between European Commissioner for Trade, Valdis Dombrovskis, and Chinese Minister of Commerce, Wang Wentao.

The European Parliament has also taken up the issue, with the Committee on Foreign Affairs preparing a report calling for a tougher policy towards China, viewing the country as a geopolitical threat to European security.

The conflict began in 2024 after the European Union imposed tariffs on Chinese electric vehicles, ranging from 17.4% for BYD to 37.6% for SAIC. Beijing responded with anti-dumping investigations into pork and cognac.

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