UK Considers Tariffs on Chinese EVs Amidst Surge in Sales
London is reportedly exploring import levies on electric vehicles from China to align with EU policy and address concerns about state subsidies.
The United Kingdom is reportedly considering imposing tariffs on Chinese electric vehicles, a move that would align it with European Union policy and address concerns that Beijing is using the UK as a pathway for subsidized vehicles. The Prime Minister's office is said to be developing potential levies in response to pressure from Brussels.
Britain is among the few major countries without significant tariffs on Chinese electric cars. The United States market is largely inaccessible to these vehicles, and the EU currently imposes a 45 percent tariff. The UK government has previously refrained from implementing similar measures to avoid jeopardizing relations with China, a significant market for its own automotive industry.
Recent sales figures show a substantial increase in the popularity of Chinese electric vehicles in the UK. The Jaecoo 7, often nicknamed the 'Temu Range Rover' due to its visual resemblance to the Range Rover Velar and its lower price point, topped the new car sales charts in September for the second time this year. In September, approximately a quarter of all new cars sold in the UK were Chinese models.
Prime Minister Andy Burnham is reportedly seeking to finalize a deal for closer ties with the EU ahead of a summit with European Commission President Ursula von der Leyen next month. Concerns are growing that Brussels may demand significant concessions on trade terms if the UK wishes to improve its relationship with the bloc.
The EU has communicated to UK ministers that without tariffs on Chinese vehicles, the UK is unlikely to receive an exemption from the 'Made in Europe' scheme, which could negatively impact British car exports to European markets.
However, the potential for retaliation from China, a key market for major British car manufacturers like Jaguar Land Rover, is a significant consideration.
Liam Byrne, a Labour MP and chair of the business committee, expressed support for the reported plans, stating, "We've been warning about China Shock 2.0 for some time - competition is good: but we need a level playing field."
A government spokesperson commented on the reports, saying, "We have not put tariffs on Chinese EVs. We continue to engage closely with industry so that our approach reflects the sector's and UK's national interests."