EU ‘tells UK to raise tariffs on Chinese cars’ to avoid made-in-Europe barriers
News
Report claims Andy Burnham urged to increase tariffs to avoid higher import/export costs on EVs and other UK products
MA
Matt Allan
25 September 2026 · 3 min read
European leaders have reportedly told Prime Minister Andy Burnham to impose tougher tariffs on Chinese cars if the UK wants to avoid penalties under new ‘made in Europe’ regulations.
According to the Financial Times, Brussels has suggested joining the EU’s customs union would be the best way to avoid new barriers on imports and exports, including EVs. However, this would require aligning economic policies, including tariffs on Chinese cars, more closely with Europe.
Since 2024, the EU has imposed tariffs of up to 45% on Chinese-built cars, a move the UK chose not to copy.
The newspaper quoted one EU official as saying: “A customs union would solve most of the problems of ‘made in Europe’, and also the question of tariff differences, which leads to fears the Chinese could avoid our tariffs by routing through the UK.”
The Prime Minister said this week he wanted the UK to be viewed as a “trusted partner” under the incoming made in Europe rules amid fears they could damage the UK car industry.
The rules, part of the EU’s Industrial Accelerator Act, are designed to protect EU businesses and provide preferential treatment for products made in Europe over Chinese imports. As matters currently stand, UK-built cars, such as the Nissan Leaf, and components fall outwith the “made in Europe” definition, meaning they won’t qualify for any incentives and risk losing competitiveness.
At the same time, new post-Brexit rules of origin coming into effect in 2027 will see UK EV exports to Europe attract a 10% tariff, with a similar impact on EVs imported from Europe, threatening to push up prices for drivers.
The UK’s Society of Motor Manufacturers and Traders (SMMT) says the current trajectory threatens €24 billion of economic activity generated through the import and export of passenger cars between the EU and UK, putting UK and EU manufacturing at risk.
SMMT chief executive Mike Hawes said: “The EU is rightly focused on strengthening its industrial base, but the UK remains fundamental to Europe’s automotive ecosystem and is therefore essential to that ambition. Excluding the UK from ‘Made in Europe’ would be an own goal, weakening competitiveness, reducing scale and limiting consumer choice.”
Europe’s tariffs on Chinese cars were introduced to counter what the European Commission deemed “unfair trade practices”, which allowed them to undercut European models. The UK chose not to impose similar penalties. In the two years since, Chinese brands have grown rapidly and in August 2026 took nearly 16% of the new car market.