Britain does not rule out tariffs on Chinese electric vehicles — The Guardian

The UK government has not ruled out introducing tariffs on Chinese-made electric vehicles should the country join the European Made in Europe initiative. Downing Street said it welcomed efforts to include the country in the Industrial Accelerator Act after France dropped its objections to Britain’s participation, The Guardian reports.

Terms of participation

The aim of the Made in Europe legislation is to curb subsidized Chinese imports by giving preference to goods produced in the EU. The UK and Norway fear that without participating in the scheme, they could be placed at a disadvantage.

Under the Franco-German proposal, London would have to dynamically align with the EU’s trade defence measures to join the initiative. This could include joining the EU’s tariffs on Chinese electric vehicles, introduced by the bloc in 2024.

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A Downing Street spokesperson called speculation about the specific terms of an agreement with the EU premature, noting that the European procedure is still ongoing. At the same time, he said that the UK has its own trade policy, is reviewing all tariffs and is working with the automotive sector to take its interests into account.

China’s reaction

The Chinese Embassy in London said it firmly opposes discriminatory practices involving higher tariffs or restrictions on Chinese goods. The diplomatic mission also said it had expressed serious concern to the British side and called trade protectionism contrary to World Trade Organization rules and market principles.

According to The Guardian, BYD sales rose by 78% year on year in September, Chery’s increased by 660%, while Changan’s share grew by more than 3,000%. Tariffs could protect British manufacturers from cheaper Chinese models, but could also raise prices for consumers and make it more difficult to sell British cars in China if the trade confrontation escalates.