British officials are considering whether to bring tariffs on Chinese electric vehicles closer to the EU’s approach. The discussion comes as London negotiates over the bloc’s planned “Made in Europe” rules, which could affect UK goods’ access to the European market.
The Sunday Times reported that Business Secretary Jonathan Reynolds was weighing higher duties on Chinese EVs. The Guardian and Bloomberg have previously reported that tariffs are being discussed in connection with the EU’s proposed Industrial Accelerator Act. London has announced no final decision.
The UK applies a general 10% import duty to cars. The EU has imposed additional duties on Chinese electric vehicles after a subsidy investigation, with rates varying by manufacturer. Media reports have said EU officials warned that differences in trade policy could complicate Britain’s participation in the Made in Europe initiative.
Chinese brands are gaining ground in Britain. The Society of Motor Manufacturers and Traders said the Jaecoo 7 was the country’s best-selling model in September, ahead of the Tesla Model 3, Ford Puma and Kia Sportage.
A UK government spokesperson told CNBC that no China-specific tariffs on electric vehicles had been imposed and that consultations with industry were continuing. China’s embassy in London said it was concerned by reports of possible tariff increases and opposed restrictive measures.