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

LONDON: The British government is reportedly mulling the imposition of tariffs on Chinese electric vehicle imports, according to a report by The Times newspaper. Business Minister Jonathan Reynolds is reportedly drafting a package of potential tariffs, citing concerns that Chinese manufacturers are flooding the market with subsidized vehicles.

However, a British government spokesperson denied the report, stating that no tariffs have been imposed on Chinese electric vehicles and that the government is still engaged closely with industry to ensure its approach aligns with national interests. The proposed tariffs would mirror the European Union's 45% levy on Chinese electric cars, a move aimed at avoiding the potential negative impact of Britain's "Made in Europe" policy, which prioritizes European-made goods and could affect UK companies selling into the EU.

The EU's "Made in Europe" policy has raised concerns among British automakers about supply chains and the potential barriers to exporting vehicles across the bloc. British Prime Minister Andy Burnham has previously stated that Britain should be treated as a "trusted partner" under EU rules, warning that exclusion could harm the UK's car industry.

The Financial Times reported in September that Brussels had urged Burnham to align more closely with EU trade policy and impose tariffs on Chinese cars if Britain wishes to avoid the "made in Europe" barriers.