EU urges levy rise on Chinese cars

By the Editorial Team · Saturday, September 26, 2026

Brussels has warned that the UK may need to raise tariffs on Chinese car imports and better align with EU trade rules to avoid barriers under the bloc’s “made in Europe” framework affecting British exports. This could limit the UK’s post-Brexit trade flexibility and raise consumer costs, as London balances EU cooperation with opposition to rejoining the customs union amid growing Chinese competition in key industries.

Brussels has indicated that the United Kingdom may need to increase tariffs on Chinese car imports and align more closely with European Union trade policies to prevent barriers related to the bloc’s “made in Europe” framework from affecting British exports. This warning came amid ongoing discussions surrounding the UK’s post-Brexit trade stance and its relationship with the EU’s evolving protectionist measures.

The “made in Europe” policy is designed to prioritize EU manufacturers in subsidies and public procurement to shield the bloc from Chinese competition, particularly in key sectors such as electric vehicles. EU officials have suggested that joining the customs union could resolve many challenges linked to the policy, including concerns about tariff differences that might allow Chinese goods to circumvent tariffs by passing through the UK.

Despite this, UK Prime Minister Andy Burnham has maintained his government’s position against rejoining the customs union or the single market, citing commitments made by the ruling Labour Party during the last election. Still, closer alignment with certain EU trade defense mechanisms, such as anti-subsidy tariffs on Chinese electric cars—which can reach up to 45 percent—could reduce the UK’s post-Brexit trade flexibility and lead to higher prices for consumers.

The UK has already mirrored some EU actions, for instance, doubling steel tariffs to 50 percent earlier this year to address a global steel surplus largely attributed to Chinese exports. However, London has resisted imposing tariffs on Chinese electric vehicles, unlike Brussels, which introduced such measures in early 2024. This divergence has allowed Chinese EV manufacturers to capture roughly 16 percent of the UK’s new car market this year.

Industry leaders and government officials express concerns that maintaining different tariff regimes from the EU while seeking to have UK supply chains recognized as “European” under the bloc’s procurement and subsidy programs may not be sustainable. Britain's car sector is actively courting Chinese investment, exemplified by a planned partnership for the carmaker Cherry to produce vehicles at Nissan’s Sunderland plant, complicating the government’s tariff decisions.

The chemical industry faces similar pressures, contending with an influx of low-cost Chinese imports that have prompted the EU to impose anti-dumping duties and are expected to introduce additional measures soon. A senior official acknowledged the government’s political tightrope, noting that advocating to remain “inside” the EU’s protectionist perimeter is difficult given the UK’s divergent tariff policies.

Any move by the UK to tighten trade defense measures against China risks provoking tensions with Beijing, a significant source of investment and trade. The Department for Business, Innovation, Science and Trade stated it seeks to deepen cooperation with the EU but aims to avoid “collateral damage” from aligned strategies to counter unfair trade practices. The European Commission declined to provide comment.

This article was reported by synthesizing coverage from multiple independent news outlets to present a balanced, unbiased account. Read about our editorial standards. Spotted an error? Let us know.