The European Commission has formally initiated an anti-subsidy investigation into car and light truck tyres imported from China, marking the latest escalation in trade tensions between the EU and Chinese tyre manufacturers.
Published in the EU Official Journal on 6 November 2025 as document C/2025/5924, the investigation will examine whether Chinese tyre producers have benefitted from unfair government subsidies that create an uneven playing field for European manufacturers.
The probe will scrutinise a range of potential subsidies, including direct grants, favourable loans, tax reliefs, and access to land and electricity at below-market rates. The investigation has been launched following complaints from the EU tyre industry, supported by evidence of significant import surges and price undercutting that have harmed domestic producers.
The Commission has up to 13 months to complete the investigation, though provisional countervailing duties could be imposed within nine months if the evidence warrants such action. These measures would be designed to offset any unfair advantages gained through Chinese government support.
This anti-subsidy investigation complements an earlier anti-dumping probe launched in May 2025 targeting the same Chinese tyre imports. The dual approach demonstrates the Commission's determination to address what EU tyre manufacturers claim are multiple forms of unfair trade practices affecting the European market.
The investigation focuses specifically on tyres for cars and light trucks, a segment that has seen substantial growth in Chinese imports in recent years. EU tyre makers have presented evidence showing that subsidised Chinese products have entered the market at prices that undercut domestic production, threatening the viability of European manufacturing.
Despite Brexit, the UK market is expected to be affected by any countervailing duties imposed by the EU. The close trade ties between the UK and EU, combined with the UK's historic alignment with EU trade policies, mean that British authorities are likely to implement similar measures.
HMRC would be responsible for enforcing such measures in the UK, maintaining trade fairness and protecting the domestic tyre industry from the same competitive pressures facing EU manufacturers.
This development reflects broader trade tensions and enforcement actions targeting Chinese imports across various sectors. The European Commission has increasingly turned to trade defence instruments to protect EU industries from what it considers to be unfair competition arising from Chinese government subsidies and support measures.
The investigation represents a significant test of the EU's commitment to defending its manufacturing base whilst navigating complex trade relationships with China, one of its largest trading partners.
Industry observers will be watching closely to see whether the Commission's evidence supports the imposition of duties, and what impact any measures might have on tyre prices and availability in both the EU and UK markets.
Tyre News previously covered the EU’s formal opening of the anti-dumping investigation into Chinese passenger and light truck tyres in May and earlier confirmation of the intended launch in our pre-notice report. Today’s subsidy case builds on that trajectory and will be followed closely by manufacturers, wholesalers and fleet buyers.
Tagged with: EU trade defence, anti-subsidy investigation, countervailing duties, Chinese tyre imports, anti-dumping, passenger car tyres, light truck tyres, EU Official Journal, DG Trade, tyre pricing
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