EU officials allegedly warned Britain of barriers to car exports over China — The Guardian

Britain’s automotive industry faces a choice between the Chinese market and access to the EU market. As The Guardian reports, European Union officials allegedly warned Andy Burnham last month that if London does not impose tariffs on cheap Chinese cars, Brussels could apply protectionist “made in Europe” barriers to British exports to the bloc.

The United Kingdom has not yet imposed import tariffs on Chinese cars. At the same time, the United States has almost completely closed its market to such vehicles, while the EU has imposed duties of up to 45% on Chinese electric cars.

Risks for exports and investment

Business Secretary Jonathan Reynolds had previously opposed tariffs, saying that China would likely respond with similar measures. This could reduce sales by British manufacturers on the Chinese market. Introducing tariffs would also raise prices for British drivers and could affect investment by Chinese brands.

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In particular, Chery is in talks to manufacture cars at Nissan’s plant in Sunderland. Victor Zhang, Chery’s deputy head in the UK, said that the company would not change its current investment plans in the country regardless of possible tariffs. He also said that most models sold by the company are hybrids rather than vehicles covered by such duties.

The EU remains the main market

According to the UK’s Society of Motor Manufacturers and Traders, the EU accounted for 58% of British car exports in the first half of the year, while China accounted for about 4%. The industry body considers the European Commission’s “made in Europe” rules, which limit subsidies, tax breaks and public procurement to cars made in the EU, an existential threat to the British automotive industry.

Meanwhile, Chinese brands BYD, Omoda and Jaecoo more than tripled their share of the UK new-car market in the first eight months of 2026, reaching 12% of sales. New car registrations in the country rose by 12% year-on-year in September, with the Jaecoo 7 and BYD Sealion 7 among the popular models.