LONDON — The United Kingdom is considering imposing tariffs on Chinese-made electric vehicles as part of its bid to join the European Union's industrial support legislation. The move has drawn a sharp warning from Beijing, which characterized it as discriminatory.
The development follows France's decision to drop its opposition to British inclusion in the scheme. Downing Street confirmed Friday that it welcomes the objective of including the UK in the Industrial Accelerator Act.
The EU legislation aims to curb subsidized Chinese imports by granting preferential treatment to products manufactured within the bloc. Under a Franco-German proposal issued Thursday, the price for UK inclusion would require London to dynamically align with EU trade defense measures—specifically adopting the EU's tariffs on Chinese EVs, which the bloc imposed in 2024.
The Chinese embassy in London voiced strong objections. A spokesperson said Beijing is "firmly opposed to any discriminatory practice involving tariff hikes or restrictive measures on Chinese products" and expressed "serious concern" about the reports, adding that "trade protectionism runs counter to WTO rules and market principles."
Internally, UK government officials strongly desire inclusion in the package, fearing that exclusion could result in billions of pounds in lost trade within the car industry and disrupt access to vital EU supply chains.
Business Secretary Jonathan Reynolds said earlier this week he would not be coerced into aligning with EU policy. A No 10 spokesperson said it was "premature to speculate" on any deal's terms, noting "still a European process to run." The UK maintains its own trade policy and keeps all tariffs under review, the spokesperson said, developed in close cooperation with the British automotive sector.
The debate unfolds as Chinese electric vehicles gain market share. BYD sales increased 78 percent year-on-year in September, while Chery's sales rose 660 percent. Changan saw its market share increase by more than 3,000 percent.
Ola Källenius, CEO of Mercedes-Benz and president of the European car trade body ACEA, warned earlier this week that locking the UK out of the legislation would be a deliberate choice by EU leaders to damage the car industry across the bloc.
EU lawmakers are expected to finalize the Industrial Accelerator Act by the end of this year or early 2027. Members of the European Parliament have tabled 5,100 amendments to the proposed legislation, including provisions to allow time for the UK to secure a deal. Britain and other non-EU nations like Norway have expressed concern about being disadvantaged if excluded.
