Britain set to impose tariffs on Chinese electric cars, The Times reports

Britain is expected to impose tariffs on Chinese electric car imports, according to The Times, with business secretary Jonathan Reynolds drawing up a package of potential levies amid concerns that Beijing is “dumping” state-subsidised vehicles into the country Reuters.

Ministers are reportedly ready to match the European Union’s 45 per cent levy on Chinese electric cars to avoid the pain of Brussels’ “Made in Europe” proposals, which would prioritise European-made goods and could lock British carmakers out of the bloc’s preferential scheme Channel News Asia.

The move is driven by EU pressure: Brussels has made clear the UK faces exclusion from the Made in Europe mechanism if it does not act, with EU officials worried Britain could become a backdoor for Chinese exports into Europe Bloomberg.

Officials have weighed the risk of Chinese retaliation against Jaguar Land Rover but concluded the economic damage of being shut out of the EU scheme would be far greater, The Times reported, citing senior government sources.

A government spokesperson told Reuters that no tariffs have been imposed, adding that ministers “continue to engage closely with industry so that our approach reflects the sector’s and UK’s national interests”. Reuters said it could not immediately verify the report.

Britain currently charges only 10 per cent on the landing price of Chinese EVs, and Chinese brands took a 23 per cent share of the UK market in September, with BYD the second best-selling brand, according to SMMT figures Autocar.