Britain is reportedly considering imposing tariffs on Chinese electric vehicle imports amid concerns that Beijing is flooding the market with state-subsidised cars.
According to the Times newspaper on Sunday, the UK’s Business minister Jonathan Reynolds is drawing up a package of potential tariffs on Chinese vehicle imports, citing concerns that Chinese manufacturers are “dumping” subsidised vehicles into Britain.
Mint could not immediately verify the report.
A spokesperson from the British government told Reuters that no tariffs have been imposed on Chinese EVs.
“We continue to engage closely with industry so that our approach reflects the sector’s and UK’s national interests,” the spokesperson said in an email.
The EU has made clear that the UK faces being cut from the ‘Made in Europe scheme’ if it doesn’t act on the tariffs, the Times of London reported Sunday, adding that EU officials are concerned the UK could become a backdoor for Chinese exports into Europe.
EU officials reportedly warned Andy Burnham last month that the UK must put tariffs on cheap Chinese vehicles otherwise Brussels would impose protectionist “made in Europe” barriers on British exports to the bloc, hitting British carmakers in their largest market.
According to the report, British ministers are ready to match the European Union’s 45 percent levy on Chinese electric cars to avoid the pain of “Made in Europe” proposals, which could impact UK companies selling into the EU.
The EU’s “Made in Europe” policy is aimed at reducing reliance on Chinese components by prioritising European-made goods, raising concerns among British automakers that supply parts into European manufacturing chains and sell vehicles across the bloc.
Burnham said last month he would make the case that Britain should be treated as a “trusted partner” under the proposed EU rules, warning that excluding the UK could damage its car industry.
Britain’s probable introduction of import duties would be a setback to Chinese automakers.
Brands including BYD Co., SAIC Motor Corp.’s MG and Chery Automobile Co.’s Jaecoo have expanded quickly in the UK, where they don’t face the additional tariffs on EVs currently in place in the EU.
They grabbed 23 percent of British new-car sales in September, with the Jaecoo 7 the country’s best-selling new model, Bloomberg reported.
UK officials are concerned about Chinese retaliation against Jaguar Land Rover but have determined the potential economic fallout of being dropped from the Made in Europe mechanism would be far more damaging, the Times said, without stating how the information was obtained.
The Financial Times reported in September that Brussels had urged British Prime Minister Andy Burnham to align more closely with EU trade policy and raise tariffs on Chinese cars if Britain wants to avoid the “made in Europe” barriers.
According to the Times, citing senior government sources, ministers believe any decision on tariffs should be based on Britain’s national interest rather than automatically following the EU’s lead.
