The British government is reportedly considering imposing tariffs on imported Chinese electric vehicles in response to pressure from the European Union. The UK has not made a final decision on tariffs yet, and the specific rates and implementation timeline have not been disclosed.
According to The Times, government sources say that UK Business Secretary Jonathan Reynolds is studying potential tariff schemes for Chinese car imports. The UK is concerned that Chinese car manufacturers, supported by government subsidies, are exporting cars to the UK market at lower prices.
Reports suggest that the UK government is weighing whether to follow the EU in imposing tariffs of up to 45% on Chinese electric vehicles. The UK is also concerned that a significant gap in trade policies between the UK and the EU could impact British car manufacturers’ exports to the EU market.
The UK government is under pressure from the EU. The Financial Times reported on September 25, citing sources, that the EU has requested the UK to raise tariffs on Chinese cars and align with EU trade policies. Failure to do so may result in UK exports being excluded from the EU’s proposed “Made in Europe” policy mechanism. The EU is concerned that if the UK maintains its relatively lax policies, Chinese cars may enter the European market via the UK.
The EU proposed the “Industrial Accelerator Act” in March this year, planning to introduce “Made in Europe” and low-carbon requirements in public procurement and support programs for strategic industries such as automobiles, steel, and aluminum to strengthen support for European-made products. If the UK is not included in these arrangements, its car industry may face unfavorable competitive conditions in the future.
The British automobile industry is closely linked to the EU market. According to data from the Society of Motor Manufacturers and Traders (SMMT), nearly 60% of UK car exports in the first half of 2026 went to the EU, while the proportion sold to China was only about 4.3%. Therefore, maintaining favorable conditions for UK car products to enter the EU market is an important consideration for London in formulating car policies towards China.
In recent years, Chinese car brands have rapidly expanded in the UK market. Chinese brands like BYD, Omoda, and Jaecoo have entered the UK market, some relying on lower prices and new energy models to quickly increase sales and market share.
The Guardian reported the latest industry data, showing that BYD, Omoda, and Jaecoo collectively accounted for about 12% of the UK’s new car market in the first eight months of 2026, more than doubling compared to the same period last year.
However, imposing higher tariffs on Chinese cars also carries risks. UK Business Secretary Reynolds previously stated that the UK must consider the retaliatory measures that higher tariffs may trigger. UK officials are particularly concerned that if China takes retaliatory measures, it could affect larger UK companies like Jaguar Land Rover with significant businesses in China.
Meanwhile, Chinese car companies’ presence in the UK is expanding from car sales to local manufacturing. Chery has signed a non-binding memorandum of understanding with Nissan to explore contract manufacturing Chery models at the Sunderland plant, potentially starting in the 2027 fiscal year. This expansion requires the UK to consider Chinese investments and local supply chains when formulating car policies towards China.
Currently, the UK has not announced the specific tariff rates, applicable car models, or implementation timeline. A government spokesperson told Reuters that there is currently “no tariff on Chinese electric vehicles,” and the government is maintaining close contact with the automotive industry to ensure that relevant policies align with UK industry and national interests.