UK weighs tariffs on Chinese car imports to align with EU

The United Kingdom is considering whether to impose tariffs on Chinese car imports as part of talks with the European Union over new manufacturing-protection legislation. The move would be intended to strengthen Britain's case for inclusion in the planned "Made in Europe" package, also referred to as the Industrial Accelerator Act. The discussions come as Brussels seeks to protect European manufacturing sectors, including autos and chemicals, from growing competition linked to China.

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According to the supplied material, the EU has raised the issue of tariffs with the UK during negotiations over the new legislation. Brussels believes Britain would need to create a level playing field if it wants to qualify for the scheme, and to match tariffs of up to 45% that the EU has applied to Chinese cars since October 2024. The UK has so far been an outlier in not imposing import taxes on Chinese vehicles, even as the United States has shut them out almost entirely.

Any British move would carry wider consequences for trade and diplomacy. The material says tariffs on Chinese cars would probably prompt a hostile response from Beijing and could test the government's desire for a reset in relations with the EU after Brexit. It would also involve a lengthy World Trade Organization process.

The EU itself took 13 months between launching its investigation into state subsidies in production and transport lines and introducing tariffs in October 2024. The issue matters because the UK is seeking access to a scheme that would require manufacturers to source components from the continent in order to protect supply chains. That is especially significant for the auto and chemicals sectors, where China's presence in European supply chains has become a growing concern.

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The UK has been lobbying hard to be included in the legislation, which could shape how manufacturers source parts and where they sell finished products. The reported debate also marks a possible shift in British policy. The material says the current government had positioned itself as a strong ally to China, seeing it as an important source of economic growth rather than a risk to British manufacturing.

It also notes that the UK has argued it does not need trade barriers in the same way as the EU because it does not face the same scale of trade deficit, which it says is now running at more than £1bn a day. What remains unclear is whether ministers will decide to proceed, and if so, how quickly any tariff process could move. The supplied material does not say whether a formal decision has been taken, only that the option is under consideration.

The next developments to watch are whether the UK aligns with the EU's approach, how Beijing responds, and whether the talks lead to British inclusion in the new manufacturing legislation.

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