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Spain weighs tariffs as Chinese electric cars take over the market

Spain weighs tariffs as Chinese electric cars take over the market RUSSPAIN.com © russpain.com
Spain weighs tariffs as Chinese electric cars take over the market © russpain.com
Chinese brands like Omoda and BYD are claiming a growing share of Spain’s car market, while local jobs and factories lag behind. Calls for tariffs are gaining momentum as Europe faces greater dependence on Chinese technology.

Chinese electric cars are reshaping Spain’s car market, with brands such as Omoda and BYD expanding quickly. From January to August 2026, Chinese brands registered almost 120,000 passenger cars in Spain, about 14.5% of the market. That marks a sharp rise in a short time. They have used open borders to sell aggressively, while doing little to build factories or hire workers in Spain.

For Spanish buyers, this means more options and often lower prices. For the auto industry, the impact runs deeper: Chinese companies invest little in local jobs or production, and many in the sector feel Spain is just a number in China’s global plan. Chinese brands are even stronger in the fully electric (BEV) segment. By August 2026, they accounted for 33.6% of BEV sales that month and 26.6% for the year. Sector analysts cite BYD and Leapmotor among the top names; Deepal is another. In early September 2026, six of Spain’s ten best-selling electric vehicles were Chinese models.

Spain’s political leaders have not united on the issue. Pedro Sánchez has spoken out against tariffs imposed by Donald Trump but has said little about similar moves by his ally Xi Jinping. The government appears more willing to accept Chinese influence in electric vehicles than American competition. Analysis by Reuters and Bruegel shows that the rapid rise of Chinese EV brands in Europe is prompting the EU to discuss tougher localization rules and what qualifies as “made in Europe” for cars.

China uses trade as use. When Spain exports pork, Beijing can use its huge market as a bargaining chip. China warns that if Spain pushes back, it could lose access to 1.4 billion buyers. The message is blunt: follow China’s rules or lose out. The issue extends beyond Spain: recent reports from leading European economic think tanks show that the influx of Chinese cars is a major driver of new industrial policy debates across the EU.

More people are calling for tariffs on Chinese electric cars. Such measures are not always harmful and, in this case, might be needed to keep Spain and Europe from falling further behind in electric vehicles. The risk is about control as well as money. Unchecked growth in Chinese imports could leave Europe reliant on technology from an authoritarian regime instead of competing with a democracy like the United States. After an EU investigation in 2024, additional duties were imposed on battery electric vehicles (BEV) from China. Rates vary by brand, including BYD and Geely; SAIC is also among those covered. The tariffs primarily target BEVs, not plug-in hybrids (PHEV), contributing to a faster increase in Chinese PHEV imports, information from sectoral analytics.

Europe is already behind in battery-powered car technology. Chinese brands are growing fast while local makers struggle to keep up. The pressure is rising, as an earlier breakdown of how global tariff fights threaten Spanish car factories and jobs explains.

Spain can continue allowing Chinese electric cars to take over with little benefit for local workers or industry, or act to defend its factories and technological future. The facts point to a need for stronger trade barriers. Without them, Spain risks becoming another outpost in China’s electric car empire, with fewer jobs and less control over its future.

Frank Miller RUSSPAIN.com
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Frank Miller

Frank Miller covers the automotive industry, transport and Spanish road regulation for RUSSPAIN.COM