Britain is considering imposing tariffs on electric vehicles (EVs) imported from China amid concerns that subsidised Chinese vehicles could undermine competition in the UK market.
The Times reported that UK Business Minister Jonathan Reynolds is preparing a potential tariff package targeting Chinese vehicle imports, although Reuters could not immediately verify the report.
A UK government spokesperson confirmed that no tariffs are currently imposed on Chinese EVs, while stressing that the government remains in close contact with the automotive industry.
“We continue to engage closely with industry to ensure our approach takes into account the interests of the sector and the UK,” the spokesperson said in an email to Reuters.
According to The Times, British ministers are considering matching the European Union’s tariffs of up to 45% on Chinese electric cars.
The move could be aimed at protecting British carmakers from the potential impact of the EU’s proposed “Made in Europe” rules, which seek to reduce reliance on Chinese components by giving preference to products made within Europe.
The proposed rules have raised concerns among British manufacturers that supply components to European production chains and sell vehicles across the bloc.
British Prime Minister Andy Burnham said in September that he would make the case for Britain to be recognised as a trusted partner under the proposed EU rules. He also warned that excluding Britain could hurt the country’s automotive industry.
The Financial Times reported in September that Brussels had urged Britain to align its trade policies more closely with the EU and raise tariffs on Chinese cars if it wanted to avoid potential barriers under the “Made in Europe” rules.
However, The Times, citing senior government sources, reported that British ministers believe any tariff decision should be based on the UK’s national interests rather than automatically following the EU’s approach.
