Great Britain appears to be considering special tariffs on Chinese electric vehicles.
Just a few days after reports that the EU is allegedly pushing for higher tariffs on Chinese electric vehicles, the British government appears to be drafting such a regulation. This is likely because only in this way can Britain meet the EU’s future “Made in Europe” criteria.
Import of Vehicles from Chinese Manufacturer Chery to Teesport
Image: PD Ports
Britain now appears to be seriously considering imposing additional tariffs on the import of Chinese electric vehicles. This move could allow Britain to align itself with EU rules, which have been imposing special anti-subsidy tariffs ranging from 7.8 to 35.3 percent depending on the manufacturer, on battery electric cars from China in addition to the regular 10 percent import tariff since late October 2024.
According to a report in The Times, Economy Minister Jonathan Reynolds is currently working on a set of potential tariffs on Chinese vehicle imports. The reason cited is concern that Chinese manufacturers are bringing in subsidized vehicles at dumping prices to the UK, as reported by news agency Reuters. Just a few days ago, it was stated that Chinese manufacturers currently hold a 16 percent market share in new vehicle registrations in the UK, across all types of propulsion.
No new tariffs imposed yet
To date, the British government has not imposed any new tariffs on Chinese electric vehicles. “We continue to maintain close communication with the industry to ensure our approach reflects both the interests of the sector and the national interests of the United Kingdom,” a government spokesperson told Reuters.
The underlying reason for the proposed special tariffs is likely political pressure from the European Union: the EU is currently working on what is known as the Industrial Accelerator Act. This act aims to place greater emphasis on products manufactured in Europe in certain subsidies, public procurement, and other industrial policy measures, with key terms including Local Content and Made in Europe or Made in EU. This is critical for the British automotive industry, as although Britain is no longer part of the EU, it remains deeply intertwined with Europe’s automotive sector. For example, the British Motor Industry Association (SMMT) recently released an analysis by Oxford Economics showing that British car production supports 24 billion euros in economic activity, 250,000 jobs, and 1.6 billion euros in tax revenue in the EU each year.
Consequently, it is important for the British automotive industry and the UK government to be included as a partner country in the Industrial Accelerator Act, so that British manufacturers are treated as suppliers just like actual EU companies. UK Prime Minister Andy Burnham stated in September that he would work to ensure Britain is treated as a “trusted partner” under the planned EU regulations. This way, Britain would continue to have full access to the EU market and comply with the EU’s “Made in Europe” requirements.
The EU’s “Made in Europe” policy aims, among other things, to reduce dependence on products and components from non-EU countries such as China by giving preference to goods produced in Europe. To enable the UK to become a partner in the EU’s “Made in Europe” criteria, the European Union is currently pressing the UK to raise tariffs on Chinese electric vehicles. This was reported by The Financial Times a few days ago, citing people familiar with the discussions.
