China issues a warning to the United Kingdom if it follows the EU’s lead: "We will take countermeasures to protect industry interests.

20/10/2026 21:00

Updated to

20/10/2026 21:00

The trade war between China and Europe over electric cars may soon see a new player enter the scene. The Chinese government has issued a direct warning to the United Kingdom regarding the possibility that British authorities might decide to impose additional tariffs on electric vehicles manufactured in Asia. Such a move would follow in the footsteps of the European Union, which has been applying specific taxes to these vehicles since October 2024 as part of its investigation into subsidies provided by Beijing to domestic manufacturers.

For now, London has not officially announced the introduction of these taxes. However, recent statements from its trade officials have raised concerns in China, especially after the British government admitted it is in talks with Brussels to coordinate their industrial policies. China’s Ministry of Commerce responded by saying it will not stand idly by if the UK eventually adopts restrictions similar to those in Europe.

China warns it will take retaliatory action against the UK

The Chinese Ministry of Commerce has issued a statement defending trade relations between the two countries and urging the UK to respect the rules of the World Trade Organization. Beijing believes that cooperation between China’s and the UK’s automotive industries brings benefits to both sides, which is why it rejects the idea of introducing new barriers to the import of electric vehicles.

"China will closely monitor the UK’s actions. If the UK insists on imposing restrictions on Chinese electric vehicles, China will take firm countermeasures to protect the legitimate rights and interests of its industry," said the Ministry of Commerce. Chinese authorities have also asked London to reconsider any such initiatives before following Brussels’ example.

As reported by Político, the warning comes after UK Trade Secretary Anas Sarwar stated that the UK and the European Union must work together to address China’s growing influence in the automotive sector. When asked about the possibility of imposing new tariffs on Chinese electric cars, Sarwar acknowledged that talks with his European counterparts remain open. However, he did not specify any potential percentages or set a timeline for their implementation.

The European Union wants London to join its trade strategy

Behind these discussions is the European program known as ‘Made in Europe’, an initiative aimed at giving preference to products manufactured within the European Union in certain public contracts. The United Kingdom seeks to ensure its companies can also benefit from this framework, especially given the importance of the European market to its automotive industry.

However, Brussels has argued that greater trade integration should be accompanied by coordination of trade defense measures. According to reports published at the end of September, the European Union would have asked the United Kingdom to raise tariffs on Chinese electric vehicles as part of the negotiations. This possibility puts London faced with a delicate decision: to strengthen its industrial ties with Europe or maintain its current trade policy toward China.

It should be noted that the United Kingdom did not follow the EU’s lead when the EU approved its final tariffs in October 2024. Since then, electric vehicles manufactured in China that enter the EU territory are subject to additional compensatory duties that, at the time of approval, ranged from 7.8% to 35.3%. These amounts are added to the standard 10% tariff, which can raise the total duty to as high as 45.3% in the most severe cases.

The British situation is different. Its government has so far maintained a more cautious stance regarding the possibility of imposing restrictions, partly due to its automotive industry’s reliance on international markets. Business and Trade Secretary Jonathan Reynolds had already warned in September that any decision on tariffs must take into account the potential consequences for British exports.

For now, China has not specified what trade retaliations it might take if the UK decides to impose new taxes on its electric vehicles. There is also no final decision from London yet. What is clear, however, is that negotiations with the European Union have created a new source of tension with Beijing, which is now explicitly warning about the consequences of extending European restrictions to the British market.