EU urges UK to raise tariffs on Chinese cars to avoid ‘made in Europe’ barriers

In a report by the Financial Times, Brussels has advised the British government to increase tariffs on Chinese cars and better align with EU trade policies to prevent "made in Europe" barriers on vital exports, according to the newspaper. When urged to treat British products equally, Brussels suggested Britain join the EU's customs union as the optimal solution, citing two sources familiar with the situation.

An EU official stated that this would address most "made in Europe" issues and reduce concerns that China could circumvent UK tariffs by passing products through the UK first. Prime Minister Andy Burnham has previously stated he would argue for Britain to be deemed a "trusted partner" under the EU's "Made in EU" guidelines, warning that exclusion could harm the UK's car industry.

The EU's "Made in Europe" initiative aims to lessen dependence on Chinese components by promoting European-made goods, which is a concern for the British automotive sector, as it supplies parts to EU supply chains and sells vehicles throughout the bloc. European Commission President Ursula von der Leyen outlined the bloc's intent to address its "unsustainable" trade deficit with China during her recent 'State of the Union' address to the European Parliament.

The accuracy of the report could not be independently confirmed by Reuters at press time. Neither the European Union nor the British Foreign Office provided immediate comment to Reuters following the report.