Brussels Pressures London: Higher Tariffs on Chinese EVs Tied to 'Made in Europe' Access

The European Union has reportedly told the UK that aligning its China trade policy more closely with Brussels could be a condition for British companies to take part in the bloc’s planned ‘Made in Europe’ industrial framework. According to Financial Times reporting, the most ambitious version of that alignment would mean the UK joining the EU Customs Union outright.

At the centre of the concern is the gap in tariff treatment. Since late October 2024, the EU has applied extra anti-subsidy duties on Chinese battery-electric passenger cars ranging from 7.8 to 35.3 per cent depending on the manufacturer, on top of the standard 10 per cent import levy. That can push the total burden as high as 45.3 per cent, the level faced by SAIC Group products such as MG and Maxus. The UK never adopted those additional duties and continues to charge only the regular 10 per cent on Chinese vehicles.

The stakes are growing for Britain’s car market. Chinese-built vehicles now make up roughly 16 per cent of UK new car registrations, a figure that likely spans all powertrain types. Meanwhile, London has been actively courting Chinese manufacturing investment at home, including a June agreement under which Chery is assessing a production line at Nissan’s Sunderland plant. UK Business and Trade Secretary Jonathan Reynolds has said the tariff question is being kept ‘under review’ and described the country’s position as finely balanced, noting that different parts of the domestic sector want different outcomes.

Industry group SMMT is pushing for the UK to be classed as a ‘trusted partner’, with British-built vehicles treated as ‘assembled in the EU’ under the new rules. It points to an Oxford Economics analysis showing UK car production underpins €24 billion in EU economic activity, 250,000 jobs and €1.6 billion in annual tax revenue. Germany’s automotive states of Baden-Württemberg, Bavaria and Lower Saxony have backed a broader ‘Made with Europe’ approach that would explicitly include the UK alongside EEA and EFTA partners.