UK weighs EU tariff alignment as Chinese electric-car imports rise

Britain is weighing whether to align its tariffs on Chinese electric vehicles with the European Union as Brussels develops industrial rules favouring locally produced goods, according to the Financial Times. EU officials have reportedly told Prime Minister Andy Burnham that closer alignment could help British manufacturers avoid discriminatory treatment under proposed “Made in Europe” rules. Those rules would affect public procurement and state-supported schemes, including in the automotive sector.

The issue comes as Chinese vehicle exports increase. Chinese electric-vehicle exports rose 33 per cent year on year in August to more than 284,000, while exports during the first eight months of the year exceeded 2.1 million, up 53 per cent. Almost 95,000 were shipped to Europe in August.

The EU has imposed countervailing duties of between 7.8 and 35.3 per cent on Chinese battery electric vehicles after an anti-subsidy investigation. Britain has retained a less punitive standard tariff system, and Chinese-made cars accounted for 14 per cent of British new-car sales in 2025. Supporters of an independent approach argue that lower tariffs preserve competition, consumer choice and access to cheaper models as Britain seeks to expand electric-vehicle use.

London could also retain tariff policy as leverage in dealings with China. However, Britain’s automotive industry is closely linked to Europe. The EU received 60.4 per cent of UK vehicle exports in 2025, while EU-made cars represented 61 per cent of British sales.

The Society of Motor Manufacturers and Traders estimates annual UK-EU automotive trade at about €80bn and has warned that exclusion from European incentives could damage investment and scale. The choice therefore involves a trade-off between tariff autonomy and access to the industrial ecosystem on which much of British vehicle manufacturing depends.