Britain is considering tariffs on Chinese electric vehicles as it seeks to protect its car industry from subsidised imports and EU trade barriers.
Britain’s government is considering tariffs on electric vehicles imported from China, as concerns grow that state-subsidised cars are entering the British market at artificially low prices.
Business Minister Jonathan Reynolds is preparing a package of possible duties in response to fears that Chinese manufacturers are “dumping” subsidised vehicles in Britain. Ministers are ready to match the EU’s 45% levy on Chinese electric cars, a step that would help Britain avoid the bloc’s proposed “Made in Europe” rules, which could affect UK companies selling into the EU.
A government spokesperson confirmed that no tariffs have so far been imposed.
The EU policy aims to reduce reliance on Chinese components by giving priority to European-made goods. British carmakers that supply parts to European production chains and sell vehicles across the bloc are concerned they could be caught up in the rules.
Prime Minister Andy Burnham said last month that he would argue for Britain to be treated as a “trusted partner” under the proposed framework, warning that excluding the UK could damage its car industry.
Brussels has also urged London to align more closely with EU trade policy and raise tariffs on Chinese cars if it wishes to avoid the new barriers.
Ministers are understood to believe that any decision on tariffs should rest on Britain’s national interest rather than automatically following the EU’s lead.
Earlier, the EU urged the UK to raise tariffs on Chinese electric vehicles and align its trade policy more closely with the bloc to avoid barriers under its “made in Europe” agenda.
