Chinese
Car Face 45% Anti-Subsidy Tariff in EU, UK may Follow Suite
[ABS News Service/06.10.2026]
The UK is reviewing whether to impose tariffs on Chinese
car imports to align itself with the EU and strengthen its case to be included
in new legislation designed to protect the European manufacturing sectors
including autos and chemicals, according to a report in The Guardian newspaper.
It is understood the EU has raised the question of tariffs
with the UK as part of the discussions on the “Made in Europe” legislation,
known as the Industrial Accelerator Act.
The UK is an outlier in choosing not to put import taxes on
Chinese vehicles, even as the US has shut them out almost entirely. Brussels
believes the UK would have to introduce tariffs to create a level playing field
to qualify for inclusion in the scheme and match the tariffs of up to 45% it
has levied on Chinese cars since October 2024.
Imposing tariffs on Chinese cars would probably prompt a
hostile response from Beijing and test Andy Burnham’s desire for a reset in the
post-Brexit relationship with the EU.
It would also involve a lengthy World Trade Organization
process. It took the EU 13 months between the launch of the investigation into
state subsidies in production and transport lines and finally imposing tariffs
in October 2024. The UK has been lobbying hard to be included in the
legislation, which will require manufacturers to procure components from the
continent to protect against the growing presence of China in supply chains,
particularly the auto and chemicals sector.
A government source pointed to comments from the business
secretary, Jonathan Reynolds, last week, saying tariffs on Chinese EVs were
“always kept … under close review”.