German SPD Backs EU Tariffs on Chinese Hybrids, Eyes Stricter Measures

Germany's Social Democratic Party (SPD) has voiced support for EU tariffs on Chinese hybrid vehicles, a stance that signals a shift from Berlin's long-standing cautious approach to such trade measures. The EU currently applies tariffs of up to 45% on Chinese electric vehicles, while hybrid vehicles remain outside the scope. The SPD now backs closing this gap.

A draft SPD paper argues that the European auto industry must be defended more resolutely against Chinese models sold at extremely low prices through unfair means. It calls on the federal government to use its influence to push the EU toward imposing the same tariffs on plug-in hybrid vehicles as on battery-electric vehicles. This position adds pressure on Chancellor Merz, who is seeking to harden Germany's stance toward China while avoiding antagonizing Beijing. Germany has previously been reluctant to adopt tough trade measures against China, fearing retaliation that could harm key domestic industries, and in 2024 it opposed EU tariffs on Chinese electric vehicles.

The SPD contends that shifts in the global landscape require Germany to adopt a new trade strategy. The paper notes that other countries' turn to "geoeconomic power politics" compels Germany and the EU to develop new geoeconomic strategic capabilities. The party advocates for bringing key manufacturing industries back to Europe, strengthening defenses against currency manipulation, and mitigating the impact of large inflows of foreign goods on workers.

SPD co-leader and Finance Minister Klingbeil said on September 1, 2026, that Germany plans to introduce a series of stricter measures in the coming weeks to address what Berlin calls unfair trade practices by China. Potential measures include requiring Chinese companies seeking to enter the German or European market to form joint ventures, imposing tariffs on products such as plug-in hybrid vehicles, and prioritizing goods manufactured in Germany or Europe.