Are the EV Tariffs Working? Western Carmakers Shifted Manufacturing to EU, however Chinese language Manufacturers Proceed to Develop — Evaluation

Assist CleanTechnica’s work by means of a Substack subscription or on Stripe.

Imports of Chinese language batteries, which face nearly no tariffs, elevated seven fold.

The EU’s electrical automotive tariffs succeeded in decreasing the market share of EVs made in China, in line with T&E evaluation of the commerce measures. However whereas the share of electrical automobiles produced in China by western manufacturers fell, imports from Chinese language manufacturers continued to develop. To keep away from Europe turning into a dumping floor — or a mere meeting plant — for Chinese language EVs, T&E known as for additional commerce measures together with tariffs on Chinese language batteries.

Western manufacturers transfer manufacturing

Electrical automobiles produced in China accounted for 17% of the EU BEV market within the first quarter of 2026, down from a peak of twenty-two% in 2024 when tariffs had been launched, the evaluation finds. The drop was largely pushed by Western manufacturers Tesla, BMW and Volvo switching manufacturing from China to Europe. European producers’ share of Chinese language BEV imports fell from 38% in 2024 to 23% in Q1 2026, and Tesla’s dropped from 26% to 19%. Chinese language carmakers now account for greater than half of Chinese language BEV imports.

Chinese language carmakers’ response: onshoring and PHEVs

Chinese language EV producers had been conscious of the tariffs, however completely different tariff charges led to completely different outcomes. The BEV imports of SAIC, which has a 35% tariff, nearly halved between 2023 and 2025. BYD, which was levied with a 17% tariff, greater than doubled its BEV imports into the EU. Regardless of the tariffs, BEVs by Chinese language manufacturers stay 21% cheaper than these from European producers, the evaluation finds.

Chinese language carmakers are onshoring extra EV manufacturing to Europe in response to the tariffs. 10 deliberate manufacturing services have been introduced because the EU Fee president introduced an anti-subsidy investigation in September 2023. Chinese language producers additionally shifted manufacturing to plug-in hybrid autos in response to the tariffs. Chinese language manufacturers now have 13% of the EU PHEV market, up from 3% in 2024.

Battery imports surge

In the meantime, Chinese language battery imports — which face nearly no tariffs — elevated seven fold between 2020 and 2025. Of the batteries produced within the EU, European producers account for lower than 1 / 4 and their future is unsure. T&E stated commerce motion would assist European batterymakers to achieve the home market with out slowing the transition to EVs. A 20% tariff on Chinese language batteries would improve the value of EU-made BEVs by simply 2.8% on common, the evaluation tasks.

Weaker EU targets, extra Chinese language imports

The evaluation additionally forecasts the affect on the EV market of revising the EU automotive CO₂ targets. The weaker targets proposed by the lead lawmaker, Massimiliano Salini MEP, would enable European carmakers to affect slower and would improve the EV market share of Chinese language manufacturers to 30% in 2035, in comparison with 15% underneath the European Fee’s proposal.

Lucien Mathieu, Vehicles Director at T&E, stated: “The EU tariffs labored up to a degree. Western carmakers moved manufacturing to Europe and Chinese language producers began to onshore. However European corporations’ competitiveness in EV and battery expertise remains to be at stake. The automotive CO₂ requirements are the important thing to constructing the marketplace for EVs in Europe, but when the EU desires to construct a powerful home battery provide chain, a mix of incentives and safety can be wanted.”

T&E calls on EU lawmakers to:

1. Broaden commerce protection measures to batteries made in China — rising the tariff from its present ultra-low degree;

2. Stop circumvention of EU commerce protection measures by means of transferring manufacturing to non-EU nations;

3. Undertake the EU Industrial Accelerator Act and Company Fleets legislation directly to create a powerful marketplace for Made-in-EU EVs and batteries;

4. Defend EU automotive electrification by safeguarding the automotive CO₂ targets for 2030 and 2035.

Learn the complete report. Information launch from T&E.