The United Kingdom is currently reviewing whether to introduce tariffs on electric vehicles (EVs) imported from China, amid growing pressure from the European Union and concerns over maintaining trade access to European markets. The potential move aims to align UK trade policy more closely with the EU’s Industrial Accelerator Act, commonly referred to as the “Made in Europe” scheme, which imposes local-content rules to protect European manufacturing sectors such as automobiles and chemicals.
Until now, the UK has been notable for not imposing hefty tariffs on Chinese EV imports, unlike the EU, which has maintained a 45% levy since October 2024, or the United States with its 100% tariff. Chinese automakers, including BYD, Chery’s Jaecoo brand, and Leapmotor, have rapidly expanded their footprint in the UK market. In September 2026, Chinese vehicles accounted for nearly a quarter of all new car sales, with the Jaecoo 7 SUV—priced at about £30,000—ranking as the best-selling new car. This affordability and availability have contributed to the rise of Chinese brands in the UK, in some cases tripling their market share in less than two years.
However, the EU has indicated that unless the UK adopts similar tariffs on Chinese EVs, it risks exclusion from the Made in Europe rules. Being excluded could hinder UK car manufacturers’ access to European markets, an outcome viewed by many industry stakeholders as potentially more damaging than the economic fallout from imposing tariffs. UK officials worry about possible retaliatory measures from China, a key trade partner and a significant market for British brands such as Jaguar Land Rover, which could be impacted by reciprocal duties.
Business Secretary Jonathan Reynolds has ordered officials to prepare a tariff package but has stopped short of confirming its implementation. Reynolds has emphasized the need for any decision to be based on the UK’s national and industry interests, noting that while tariffs might benefit some domestic manufacturers like Nissan, others, including Jaguar Land Rover, could suffer from diminished access to China due to retaliatory tariffs. Reynolds has stated that the government will maintain flexibility and continue to review the situation as the balance of interests evolves.
The UK government has engaged closely with industry representatives to assess the potential implications. Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, has urged that any tariffs be grounded in robust evidence to avoid unintended consequences and maintain open, competitive markets. The industry faces a complex trade-off: Chinese investment could serve as a vital lifeline for some manufacturers, while sustained access to European markets remains crucial for others, especially smaller companies.
Meanwhile, Nissan’s European chair, Massimiliano Messina, has voiced concerns about the UK potentially becoming a “back door” for Chinese EVs into Europe, advocating for a reassessment of tariff policies to ensure a level playing field. Nissan is engaging with Chinese automaker Chery to build vehicles at its Sunderland plant, potentially aligning with the Made in Europe requirements.
Chinese automakers have signaled their intent to remain committed to the UK market despite the tariff discussions. Victor Zhang, UK managing director of Jaecoo and Omoda, both owned by Chery, stated that tariffs would not deter their investment in Britain.
As the UK seeks to negotiate closer ties with the EU amid broader trade and political discussions, including signals from Prime Minister Andy Burnham on a possible EU re-engagement, the tariff question remains central. The outcome will likely hinge on balancing trade relationships with China against the desire to secure favourable conditions within European market frameworks.