Just days after a report that the EU is allegedly pushing for higher tariffs on Chinese electric cars, the British government is now apparently drawing up a corresponding regulation. This is presumably the only way the UK can be eligible for the EU's upcoming "Made in Europe" initiative.
The UK is reportedly considering additional tariffs on Chinese electric vehicles. This could align the UK with EU rules imposing special anti-subsidy tariffs of between 7.8 and 35.3 per cent on battery-electric passenger cars from China. Anti-subsidy tariffs have been in force in the EU since the end of October 2024, on top of a regular import duty of 10 per cent, depending on the manufacturer.
According to the British publication The Times, Economic Secretary Jonathan Reynolds is currently developing a package of potential tariffs on Chinese vehicle imports. The concern is that Chinese manufacturers are bringing subsidised vehicles to the UK at dumping prices, as Reuters summarises. Just a few days ago, it was reported that Chinese manufacturers currently hold a 16 per cent market share in new registrations in the UK, across all powertrain types.
So far, however, the UK government has not yet imposed any new tariffs on Chinese electric vehicles. “We continue to engage closely with industry so that our approach reflects the sector’s and UK’s national interests,” a government spokesperson told Reuters.
The background to the proposed special tariffs is likely political pressure from the European Union: the EU is currently working on its Industrial Accelerator Act .
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