UK tariffs on Chinese electric cars under consideration
By Anthony Sharkey, Chief Operating Officer, New Reg Limited
The UK government is drawing up plans that could place tariffs on Chinese electric vehicles, a move that may push up showroom prices for British buyers.
The UK government is actively preparing plans to impose tariffs on electric cars imported from China, according to multiple reports, in a move that could raise the cost of some of the most competitively priced EVs currently available to British buyers.
A significant part of the pressure is coming from the European Union, which has told the UK that aligning with European tariff policy on Chinese vehicles is a condition of the UK benefiting from Made in Europe status. EU leaders have made clear that they regard tariffs on state-subsidised Chinese cars as essential, and that countries seeking to take advantage of that trade classification are expected to follow suit.
The concern driving the debate on both sides of the Channel is that Chinese electric vehicles benefit from heavy state subsidies, allowing manufacturers to sell them at prices that European and British carmakers struggle to match without making a loss. Governments in Europe have argued that without tariff protection, domestic vehicle manufacturing faces long-term damage.
For UK buyers, the practical consequence could be higher prices on Chinese-branded EVs and on vehicles assembled in China by other manufacturers. The business secretary is said to be involved in the preparations, though no final decision on the level or timing of any tariff has been announced. How the policy develops will depend in part on how negotiations between the UK and EU continue to unfold.