UK may match EU tariffs on Chinese EVs to join Made in Europe scheme
The UK Government has left open the possibility of matching EU tariffs on Chinese electric vehicles if that is required for Britain to join the EU’s proposed Made in Europe scheme. The rules are intended to give European-made products preferential treatment and curb subsidised imports; the UK fears exclusion could damage its car industry by cutting it out of European supply chains.
A Franco-German proposal would let the UK and Norway join if they align with EU trade defence measures, including tariffs introduced in 2024. Downing Street called discussion of the terms premature, while China’s embassy warned that higher tariffs would be discriminatory and contrary to trade principles. Chinese brands are gaining ground in the UK: September sales were up 78% year on year for BYD and 660% for Chery. Tariffs could protect UK manufacturers from cheaper imports but raise consumer prices and risk retaliation, while about 80% of UK-made cars are exported.
- The UK may align with EU tariffs to join its Made in Europe scheme.
- China has warned against higher tariffs on its electric vehicles.
- Tariffs could protect manufacturers but raise prices and risk retaliation.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Matching EU tariffs could be a practical price of keeping UK manufacturers inside European supply chains and eligible for preferential treatment under the proposed scheme. Supporters could argue that tariffs help offset subsidised imports and protect investment, jobs and production in a car industry that depends heavily on exports.
The case against
Matching the tariffs could raise prices and reduce choice for UK consumers, while inviting retaliation that harms British exporters. Opponents could argue that excluding competitive Chinese vehicles or aligning with EU trade measures risks weakening open trade, and that the proposed scheme’s terms are still uncertain.
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Originally published by The Guardian as “No 10 leaves option open to impose Chinese EV tariffs if UK joins EU scheme”.