UK reviews tariffs on Chinese electric vehicles — Politico Europe

In the United Kingdom, the government is reviewing the issue of tariffs on Chinese electric vehicles amid London's talks with Brussels on participation in the Buy European program. Business Secretary Jonathan Reynolds said this at the Labour Party conference in Liverpool, Politico Europe reports.

London's position

Reynolds noted that the government is monitoring the issue of tariffs on Chinese electric cars more closely than many other topics. According to him, different parts of the UK automotive sector expect different decisions from the government.

The minister called the UK's position “finely balanced.” He explained that the country has an export-oriented sector and therefore must avoid steps that could jeopardize its export markets, while also taking into account possible retaliatory measures should tariffs be imposed.

Talks with the EU

As the Financial Times previously reported, the European Union asked the United Kingdom to raise tariffs on Chinese electric vehicles in order to advance negotiations on the country's participation in the EU industrial program. Brussels fears that Britain could become a channel for Chinese cars to access the single market.

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EU countries are considering whether to grant preferential treatment to British automotive exports under Buy European. The European Union is also preparing legislation aimed at limiting foreign manufacturers' access to subsidies, tax incentives, and public procurement. In 2024, the bloc imposed double-digit tariffs on Chinese electric vehicles.

Reynolds said that excluding British supply chains from the Made in Europe initiative would not be in Europe's interests. The UK's SMMT automotive association previously warned that this could mean a loss of €24 billion in economic activity for the EU. According to the association's assessment, the restrictions could also affect British chemical and energy supply chains.

Chinese companies view the United Kingdom as a potential manufacturing base. In June, Nissan signed a memorandum of understanding with Chinese electric vehicle manufacturer Chery on the use of one of the production lines at its plant in Sunderland.