UK Business Secretary Jonathan Reynolds is reviewing potential tariffs on Chinese electric vehicles as the country grapples with a surge in imports and seeks inclusion in the EU's 'Buy European' program. The decision is described as 'finely balanced' due to potential retaliatory actions and the impact on UK export markets.
The UK's decision on Chinese EV tariffs will impact its automotive industry's competitiveness, its trade relationship with the EU, and its ability to participate in European supply chains, potentially affecting billions in economic activity and export markets.
Britain is considering imposing tariffs on Chinese electric vehicles amid concerns over a surge in imports and potential market flooding with subsidized cars. Business Secretary Jonathan Reynolds stated that the issue is "under review, to be frank, more closely than lots of other issues," describing the UK's position as "finely balanced."
The European Union has requested that the UK increase tariffs on Chinese EVs to be included in its 'Buy European' industrial program. Brussels aims to protect its member economies from cheap, subsidized Chinese vehicles and is preparing legislation to deny overseas manufacturers access to subsidies and public procurement deals. The EU already imposed double-digit tariffs on Chinese EVs in 2024.
Reynolds emphasized that the UK, as an export-oriented sector, must consider the risk to its export markets and the potential for retaliatory actions before implementing tariffs. He added that excluding the UK from the 'Made in Europe' initiative would not benefit Europe, as the UK is the second-largest economy on the continent and should be part of efforts to build greater resilience against pressures from the US and China.
British ministers are reportedly prepared to match the EU's 45% levy on Chinese electric cars to avoid potential barriers under the 'Made in Europe' proposals, which could affect UK companies selling into the EU. Chinese firms have been exploring the UK as a base, with Nissan having struck a memorandum of understanding for Chinese EV giant Chery to use one of its Sunderland factory lines. The automotive lobby group SMMT warned that excluding UK supply chains from 'Made in Europe' could cost the EU €24 billion in economic activity.
Pick the topics you care about. Get only what matters, on your cadence.