Full Breakdown
UK Moves Toward Tariffs on Chinese Electric Vehicles
By Drooid · · How we work
Core Development
British Business, Innovation, Science and Trade Secretary Jonathan Reynolds is drafting a package of import duties on Chinese electric-vehicle (EV) imports. The move follows reports on October 4 that European Union's (EU) officials warned the United Kingdom could be excluded from the EU’s “Made in Europe” scheme unless it acts, and a October 5 report that the UK is preparing to match the EU’s 45 percent levy on Chinese EVs. Ministers say the proposal aims to prevent the UK from becoming a back-door for subsidised Chinese cars into the European market.
Trade Context and EU Pressure
The EU’s “Made in Europe” policy, introduced in 2024, restricts subsidies, tax breaks and public procurement to vehicles built within the bloc and already imposes duties of up to 45 percent on Chinese EVs. The United Kingdom has been an outlier, having imposed no tariffs to date, while the United States has largely barred Chinese EVs. The EU accounts for roughly 58 percent of UK car exports in the first half of the year, compared with about 4 percent for China, making alignment with EU rules a commercial imperative for British manufacturers.
Industry Impact and Data
Chinese-made cars comprised nearly a quarter of all vehicles sold in the UK in September, representing five of the top 25 brands; the Jaecoo 7 alone sold close to 11,000 units. Jaguar Land Rover’s Chinese sales have fallen from 146,000 in 2017 to 62,400 in the most recent financial year, reflecting intense competition. Nissan’s European chairman Massimiliano Messina warned that the UK risks becoming a “corridor” for Chinese EVs into the EU. The Society of Motor Manufacturers and Traders (SMMT) chief executive Mike Hawes cautioned that excluding British-produced vehicles from the EU market would cause “mutual damage” to both sides.
Official Statements & Responses
Senior government sources said the balance of risk has shifted given the scale of Chinese imports. Prime Minister Andy Burnham has argued the UK should be treated as a “trusted partner” under the EU’s proposals to avoid damage to the domestic car industry.
Verbatim Quotes
- “The UK and EU automotive industries are deeply integrated, so effectively excluding British-produced vehicles from their largest market would assure mutual damage.” — China. Mike Hawes, the SMMT’s chief executive
- “We have not put tariffs on Chinese EVs. We continue to engage closely with industry so that our approach reflects the sector’s and UK’s national interests.” — government spokesperson