UK contemplating tariffs on Chinese automobile imports to align with EU, reviews say | Tariffs
The UK is contemplating whether or not to impose tariffs on Chinese automobile imports to align itself with the EU and strengthen its case to be included in new laws designed to guard the European manufacturing sectors together with autos and chemical compounds.
It is known the EU has raised the query of tariffs with the UK as a part of the discussions on the upcoming “Made in Europe” legislation, often known as the Industrial Accelerator Act.
The UK is an outlier in selecting to not put import taxes on Chinese automobiles, even because the US has shut them out almost entirely. Brussels believes the UK must introduce tariffs to create a degree taking part in discipline to qualify for inclusion within the scheme and match the tariffs of as much as 45% it has levied on Chinese automobiles since October 2024.
Imposing tariffs on Chinese automobiles would in all probability immediate a hostile response from Beijing and take a look at Andy Burnham’s need for a reset in the post-Brexit relationship with the EU.
It would additionally contain a prolonged World Trade Organization course of. It took the EU 13 months between the launch of the investigation into state subsidies in manufacturing and transport traces and eventually imposing tariffs in October 2024.
The UK has been lobbying exhausting to be included within the upcoming laws, which would require producers to obtain parts from the continent to guard towards the rising presence of China in provide chains, significantly the auto and chemical compounds sector.
If tariffs had been to be imposed, the transfer can be a break with the earlier authorities coverage. Keir Starmer’s authorities positioned itself as a powerful ally to China, viewing it as an important source of economic growth somewhat than a threat to British manufacturing.
The UK has constantly argued it doesn’t want commerce obstacles in the way in which Brussels does as a result of it doesn’t have the massive commerce deficit – now working at extra £1bn (€1.18bn) a day – that the EU is struggling to comprise.
A report within the Times quoted a senior authorities supply saying that the chance evaluation had since modified given the hazard Made in Europe posed to UK automobile business, whose greatest marketplace for completed merchandise and elements is the EU.
China’s rising commerce with the EU – not solely in completed merchandise similar to automobiles but additionally in parts – is inflicting deep concern about cannibalisation of native industries in European capitals. The EU commerce commissioner, Maroš Šefčovič, is visiting Beijing this Wednesday for talks over a reset in trade relations.
Experts mentioned final week the UK automobile business confronted a “difficult trade-off”, with Chinese capital allocation a possible “lifeline” for carmakers, whereas entry to Europe would even be “essential” for smaller producers.
But Nissan’s chair in Europe, Massimiliano Messina, has not too long ago mentioned that “Europe can not have a Trojan horse the place the Chinese are going to flood the market” by means of imports by way of Great Britain.
Nissan is in talks with the Chinese company Chery to fabricate automobiles in its Sunderland plant, however this may nonetheless align with EU’s Made in Europe coverage.
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The EU views Chinese producers primarily based in Europe, using EU employees, as much less of a menace to its indigenous industries. Chinese manufacturers made by BYD in Hungary, for instance, won’t be topic to import duties.
Brands similar to BYD, Leapmotor and Jaecoo greater than tripled their share of the UK new automobile market 2026, reaching 12% of gross sales, in line with the most recent business figures.
BYD has virtually doubled its share of the UK market in September 2026 in contrast with September 2025 with 5.75% of the market, in line with figures from the Society of Motor Manufacturers and Traders launched on Monday.
In the 12 months thus far, BYD’s share has gone up from 2.2% to three.93% with 68,000 BYD automobiles bought as much as the tip of September, closing in on BMW, which shifted 91,000.
Jaecoo’s share has rocketed, rising by 223%, with 58,000 new automobiles bought within the 12 months thus far, whereas Leapmotor gross sales have soared by an outstanding 765% – up from about 1,500 automobiles bought in 2025 to only greater than 13,000 within the 12 months thus far.
A UK authorities spokesperson mentioned: “We haven’t put tariffs on Chinese EVs. We proceed to have interaction intently with business in order that our strategy displays the sector’s and UK’s nationwide pursuits.”
