Full Breakdown
UK Mulls Tariffs on Chinese Electric Vehicles Amid EU Alignment Push
By Drooid · · How we work
Core Event: Proposed Tariffs on Chinese EVs
The United Kingdom is evaluating import duties on electric vehicles (EVs) built by Chinese manufacturers. Business Secretary Jonathan Reynolds is reported to be weighing tariffs after the European Union (EU) raised concerns that the UK’s tariff-free stance could allow China to use Britain as a “backdoor” into the European market. The aim is to prevent subsidised Chinese EVs from undercutting European and UK carmakers.
Background & Context
Since October 2024 the EU has imposed duties of up to 45 % on Chinese-made EVs as part of its “Made in Europe” strategy. The UK, which has avoided the extra duties applied by the United States and the EU, is now seeking “favourable treatment” under the same scheme to protect its domestic automotive sector and preserve its €80 bn trading relationship with the bloc.
Data & Statistics
- Market share: Chinese-origin cars accounted for nearly a quarter of all UK registrations in September 2026, with the Jaecoo 7 leading the month at over 10,800 units (SMMT).
- EV penetration: Chinese EVs made up 23 % of new car sales in September 2026.
- Brand performance: BYD’s September share rose to 5.75 %, delivering 68,000 sales YTD; Leapmotor’s sales surged 765 % to more than 13,000 units.
- EU duty rates: BYD faces 17 %, Geely 18.8 %, and SAIC 35.3 % in the EU.
Official Statements & Responses
- Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said the priority is a “pragmatic agreement recognising the UK as a trusted ‘Made in Europe’ partner” to avoid damaging the €80 bn trading relationship.
- Victor Zhang, UK managing director of Jaecoo and Omoda, affirmed that “Tariffs come and go but it won’t change our investment in the UK. We are here to stay.”
Why It Matters / Impact
If duties are introduced, manufacturers could pass part of the cost to consumers through higher list prices, reduced discounts, or tighter finance terms. The policy also reflects a broader effort to keep UK car production linked to European supply chains. Aligning with the EU’s rules would help UK factories avoid exclusion from future EU trade incentives and protect the integrated automotive ecosystem that accounts for roughly 58 % of British car exports.
What’s Next
The tariff proposal remains “under review” with no formal rate announced. The UK continues negotiations with the EU to secure “Made in Europe” status for its manufacturers, while Chinese firms are exploring hybrid models and local assembly to mitigate potential duties. Future statements from the Department for Business and Trade will clarify the timeline and scope of any eventual levy.
Verbatim Quotes
- “The immediate priority is a pragmatic agreement recognising the UK as a trusted ‘Made in Europe’ partner as the exclusion of UK-built vehicles would severely damage both our highly integrated industries, jeopardising the €80bn trading relationship,” — Mike Hawes
- “Tariffs come and go but it won’t change our investment in the UK. We are here to stay,” — Victor Zhang