UK weighs tariffs on Chinese EVs as Brussels seeks closer alignment on China trade
The UK government is considering raising tariffs on Chinese-made electric vehicles, with one option of up to 45% matching the EU, according to The Telegraph and PravdaReport, though the government says no decision has been taken. The EU is reportedly pressing London to align, warning UK carmakers may not count as European under the proposed Industrial Accelerator Act if it does not. Chinese brands already hold around 12% of UK new car sales this year.
Bottom line — Whether Britain matches EU duties will decide if UK carmakers keep access to European 'Made in Europe' subsidies and procurement, with Chinese brands at roughly 12% of UK sales.
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FNN reports the UK currently applies a 10% import duty to Chinese cars with no China-specific tariff, while EU countervailing duties take the combined rate to as much as 45.3% depending on manufacturer.
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POLITICO reports EU officials warn Britain's automotive sector may not be counted as European unless London aligns with EU tariffs, and that both sides are exploring a technical workaround on cathode material rules.
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FNN quotes Nissan's European chairman Massimiliano Messina warning against Europe being exposed to a large influx of Chinese vehicles through Britain, even as Nissan talks with Chery about producing at its Sunderland plant.
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FNN reports BYD, Leapmotor and Jaecoo together account for around 12% of UK new car sales in 2026, and BYD's share reached 3.93% year to date by end of September.
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FNN notes UK battery electric share stood at 26.2% year to date against a 33% target under the Zero Emission Vehicle Mandate for 2026, so tariffs could make the transition harder for price-sensitive buyers.
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EUobserver reports Chinese manufacturers are now setting up production in Europe, with Stellantis and Leapmotor cooperating and Dongfeng negotiating at Rennes La Janais, and 12 projects in total across several EU states.
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EUobserver reports a Franco-German paper circulating in Brussels calls for restricting Chinese market access, with the issue set for discussion when EU leaders meet, and a possible new 'diversification' tool on critical materials.