UK resists EU pressure to impose tariffs on Chinese EVs

The U.K. is facing pressure from the European Union to align with its trade defense measures, including tariffs on Chinese electric vehicles, in order to be exempt from the bloc's "Made in Europe" localization rules. Business Secretary Jonathan Reynolds, however, has pushed back against these demands, stating that the UK's trade decisions are based on its own national interests and not on requests from other countries. He dismissed concerns that the UK could serve as a backdoor into the European market for Chinese companies. The EU imposed tariffs on Chinese EVs in 2024 and recently agreed to a quota on Chinese hybrid cars, citing fears of deindustrialization and job losses due to cheaper alternatives. Reynolds indicated that while sanctions on Chinese goods are an option, the UK government keeps its trade defense policies under review based on the needs of its automotive sector, which is export-led. The ongoing divisions on trade and industrial policy between the UK and EU could impact upcoming negotiations for closer economic ties, including a UK-EU summit scheduled for November 20 in Brussels. British officials hope to influence the European legislation on localization rules during these talks.