EU prepares safeguard tariffs on Chinese hybrid imports via quota system

The European Commission is preparing safeguard measures, likely tariff-rate quotas, to limit Chinese hybrid vehicle imports, using hybrids as a test case for broader sectoral protection. This marks a shift from earlier anti-subsidy tariffs to a more flexible quota-based mechanism, signaling escalating EU-China trade friction. The impact on market prices and supply chains is uncertain pending details.