Exclusive:
Britain is preparing to follow the EU and impose import taxes on Chinese electric cars in a move that will push up prices on the forecourt but protect UK manufacturers
The government is drawing up a package of potential tariffs to be imposed on Chinese car imports amid concerns that Beijing is “dumping” state-subsidised vehicles into the UK
The new import charges have been a key demand from Brussels, which is concerned that Britain has become a backdoor for Chinese exports into the wider European market
The EU has made clear to ministers that the UK must put tariffs on Chinese vehicles or face being cut out from the “Made in Europe” scheme, which would make exports by British carmakers to their largest markets uncompetitive
Britain’s participation in Made in Europe has been a sticking point before the UK-EU summit between Andy Burnham and the bloc’s leaders next month
Nearly a quarter of cars sold in the UK this September were Chinese models. They now account for five of the top 25 brands. The Jaecoo 7 sold nearly 11,000 vehicles and was the top monthly seller for a Chinese marque
The UK has been an outlier in choosing not to impose import taxes on Chinese vehicles. The US has shut them out almost entirely and the EU imposed duties of up to 45 per cent in 2024
There have been particular concerns about Jaguar Land Rover (JLR), which has a large market in China and would potentially be subject to retaliatory levies
However, the government believes t the “balance has shifted” given the potential economic impact of the Made in Europe scheme