The EU had 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.
The European Union had urged the UK to increase tariffs on Chinese cars and align more closely with EU trade policy to prevent British exports from facing barriers under the bloc’s “made in Europe” measures, according to people familiar with the discussions.
The EU had told London that joining the bloc’s customs union would provide the clearest solution, as it would address concerns over tariff differences and the potential routing of Chinese goods through the UK into the European market.
The UK government has ruled out membership of the customs union or single market.
The EU’s “made in Europe” policy is intended to favour EU manufacturers in subsidies and public procurement as the bloc responds to competition from China. The UK had already followed an EU decision to double steel tariffs to 50% and halve quotas, but did not impose EU tariffs on Chinese electric vehicles in 2024.
Chinese carmakers had secured a combined 16% share of the UK’s new car market in 2026, while Nissan’s European boss Massimiliano Messina warned that the UK could become a “corridor” into the EU for Chinese EVs matching EU anti-subsidy tariffs of up to 45% on Chinese EVs would reduce the UK’s divergence from EU trade policy.
The issue had also extended to chemicals, where cheap Chinese imports had prompted a series of EU anti-dumping duties. The EU had announced it would monitor UK exports of titanium dioxide after British competition authorities cleared a Chinese producer to acquire a plant in Teesside.
The UK Department for Business, Innovation, Science and Trade said it was exploring deeper co-operation with the EU while seeking to avoid “collateral damage”. It said the UK would continue to introduce trade measures independently and based on the country’s economic interests and those of industry.
