UK leaves open Chinese EV tariffs as part of EU Made in Europe scheme
Downing Street has left open the possibility of imposing tariffs on Chinese-made electric vehicles if the United Kingdom joins the European Union's Made in Europe package. The move comes after France dropped its opposition to Britain taking part in the scheme, which is designed to support European industry and curb subsidised imports. Beijing has warned that any such step would be discriminatory.
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The government said it would welcome the objective of including the UK in the Industrial Accelerator Act, but stressed that it was too early to set out the terms of any deal. A No 10 spokesperson said there was still a European process to run and that the UK keeps all tariffs under review. The spokesperson also said ministers work closely with the British automotive sector to ensure trade policy reflects its interests.
The immediate issue is whether the UK would have to align dynamically with EU trade-defence measures, including the bloc's tariffs on Chinese EVs introduced in 2024. A Franco-German proposal circulated on Thursday night said that would be the price of joining the package. Business secretary Jonathan Reynolds said this week that he would not be coerced into aligning with EU policy, even as the government seeks access to the scheme.
The stakes are significant for the car industry, which ministers fear could lose billions of pounds in trade if the UK is excluded from European supply chains. The Made in Europe package is intended to give EU-made products preferential treatment, and countries outside the bloc, including Norway, are also concerned about being left at a disadvantage. The debate reflects a wider tension between industrial policy and trade openness as Europe tries to respond to Chinese competition.
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Chinese electric vehicles have become increasingly popular in the UK market, adding to the sensitivity of any tariff decision. The rows over market access and trade defence measures also come as European lawmakers continue to shape the details of the package. For London, the question is whether participation would protect domestic industry or force it into closer alignment with Brussels on China policy.
What remains unclear is whether the UK will accept any requirement to mirror EU tariffs, and how far negotiations over the Industrial Accelerator Act will progress. The European process is still under way, and no final agreement has been announced. The next developments are likely to depend on talks between London, Brussels and member states over the scope of the scheme and the conditions for joining it.
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