China's Ministry of Commerce has issued a formal warning to the United Kingdom, urging the government to avoid implementing restrictions on Chinese electric vehicles. The ministry stated that it would take firm countermeasures to protect its industry interests if Britain decides to follow the European Union's lead in imposing trade barriers.
The warning follows reports that UK Trade Minister Anas Sarwar is engaged in discussions with European partners regarding potential tariffs. These talks are linked to Britain's efforts to secure access to the EU's Made in Europe program, which provides preferential treatment for products manufactured within the bloc.
The EU previously introduced definitive countervailing duties on Chinese battery electric vehicles in October 2024, set for a five-year period. These duties range from 7.8% to 35.3%, which, when added to the standard 10% import tariff, bring the maximum total rate to 45.3%.
While the UK did not adopt similar tariffs in 2024, the current trade negotiations highlight the pressure on London to align its policy with Brussels. Business Secretary Jonathan Reynolds noted that the British automotive sector relies heavily on exports, making the potential impact of retaliatory measures a key factor in policy decisions.
