Britain set to levy tariffs on Chinese electric cars

Britain is considering imposing tariffs on Chinese electric vehicle (EV) imports amid concerns that Beijing is flooding the market with state-subsidised cars, the Times newspaper reported on Sunday.

Business minister Jonathan Reynolds is drawing up a package of potential tariffs on Chinese vehicle imports, the report said, citing concerns that Chinese manufacturers are “dumping” subsidised vehicles into Britain.

Reuters could not immediately verify the report.

Asked to comment, a spokesman from the British government told Reuters no tariffs have been imposed on Chinese EVs.

“We continue to engage closely with industry so that our approach reflects the sector’s and the UK’s national interests,” the spokesman said in an email.

British ministers are ready to match the EU’s 45% levy on Chinese electric cars, the Times said, to avoid the pain of “Made in Europe” proposals, which could impact UK companies selling into the EU.

The EU’s “Made in Europe” policy is aimed at reducing reliance on Chinese components by prioritising European-made goods, raising concerns among British automakers that supply parts into European manufacturing chains and sell vehicles across the bloc.

Burnham said last month he would make the case that Britain should be treated as a “trusted partner” under the proposed EU rules, warning that excluding the UK could damage its car industry.

The Financial Times reported in September that Brussels had urged British prime minister Andy Burnham to align more closely with EU trade policy and raise tariffs on Chinese cars if Britain wants to avoid the “made in Europe” barriers.

According to the Times, citing senior government sources, ministers believe any decision on tariffs should be based on Britain’s national interest rather than automatically following the EU’s lead.