The UK has reportedly been urged to impose tariffs on Chinese cars by the European Union over fears that exports to the bloc could face additional barriers.
The Financial Times has reported that Brussels is urging Andy Burnham to raise tariffs on Chinese cars and align with the EU’s policies or risk expensive costs on exports.
The UK remains excluded from the EU’s “Made in Europe” scheme, which is designed to prioritise products made on the continent amid intense pressure from China.
Experts have suggested that the UK could be included as a member to ensure that it benefits from certain incentives and avoids tough tariffs.
An EU official told the FT that a “customs union would solve most of the problems” associated with the “Made in Europe” scheme.
They added: “And also the question of tariff differences, which leads to fears the Chinese could avoid our tariffs by routing through the UK.”
The European Union currently imposes tariffs of up to 45 per cent on Chinese electric vehicles, as well as specific tariffs on certain manufacturers.
Duties were confirmed by the EU in 2024 to hit Chinese automakers with additional tariffs, including BYD (17 per cent), Geely Group (18.8 per cent), SAIC Group (35.3 per cent), and Tesla’s Shanghai operation (7.8 per cent).
Reports suggest that the EU has urged the UK to impose tariffs on Chinese cars
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GETTY/REUTERS
Lawmakers in Brussels have consistently sounded the alarm in response to competition from China and the devastating impact it could have on European manufacturers.
The likes of BMW and Mercedes-Benz have stressed the importance of ensuring the sustainable future of European automaking, especially against a flood of new Chinese cars.
Vehicles exported from China face large tariffs because they are far cheaper to produce than cars made in Europe, while the EU stated that Chinese brands made use of “unfair government subsidies”.
Since the start of the year, Chinese brands have seen huge success across the European Union, which has eaten into the dominant market share of European production giants.
BYD and other Chinese brands have seen giant sales growth in recent years across Europe | BYDChinese brands have sold hundreds of thousands of vehicles, with Geely Group capturing 2.7 per cent of the market, followed by BYD (2.4 per cent), SAIC Motor (2.2 per cent) and Chery Automobile (1.5 per cent).
Many Chinese manufacturers can offer premium electric cars for much lower prices, while retaining impressive technology and suitable battery ranges for drivers.
The UK has seen a similar pattern across all powertrains, especially with the Jaecoo 7, which is the third best-selling vehicle nationwide this year.
In August alone, the Jaecoo 7, Jaecoo 5 and Omoda 5 were among the 10 best-selling models, beating out established models such as the Mini Cooper, Ford Kuga and Vauxhall Frontera.
The Jaecoo 7 has quickly become one of the UK’s most popular vehicles | JAECOOGB News has contacted the Department for Business, Innovation, Science and Trade for a comment.
Speaking previously to GB News, a Government spokesperson said it was “always very vigilant” about international developments.
It added that any decision on the implementation of tariffs has to be the correct decision for the domestic automotive industry.
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