The European Union is reportedly pressuring the UK to increase import tariffs on Chinese electric vehicles. Brussels suggests that closer alignment with EU trade policy toward China could be a condition for British companies to participate in the upcoming 'Made in Europe' industrial policy, part of the EU's Industrial Accelerator Act.
Currently, the EU imposes additional anti-subsidy tariffs of 7.8 to 35.3 percent on Chinese electric cars, on top of a standard 10 percent duty. The UK maintains only the 10 percent duty. UK Business and Trade Secretary Jonathan Reynolds stated that the government is keeping the tariff issue under review, acknowledging that the sector's interests are divided.
The UK automotive industry, represented by the SMMT, argues that British production supports €24 billion in economic activity and 250,000 jobs within the EU. The association warns that excluding the UK from European funding and procurement rules would harm the competitiveness of both regions.
German state leaders from Baden-Wurttemberg, Bavaria, and Lower Saxony have officially advocated for including the UK in the 'Made with Europe' framework. Meanwhile, stricter rules of origin for electric vehicle batteries in EU-UK trade are scheduled to take effect in early 2027.
