October 5, 2026
The British government is considering imposing additional customs duties on electric cars imported from China, in a potential shift in the country’s trade policy, aimed at protecting the local auto industry sector and strengthening economic cooperation with the European Union.
In this context, British media reports reported that the Business Minister, Jonathan Reynolds, is preparing a potential tariff package, amid mounting fears of the influx of government-subsidized vehicles from Beijing at competitive prices that would harm the ability of local companies to survive in the market. On the other hand, the government stressed that these measures are still under study and have not been officially approved yet.
These moves come amid increasing pressure from Brussels on London to harmonize its trade policies with the European Union, which in turn imposes duties of up to about 45% on some Chinese electric cars. Through this step, Britain seeks to ensure that its companies are classified as a reliable partner within the modern “Made in Europe” rules of origin, to avoid any measures that might harm its exports and supply chains linked to the European market.
However, this step puts the British government before a complex economic equation. London fears that these fees will lead to retaliatory reactions from Beijing targeting British companies exporting to the Chinese market, especially at a time when the local market is witnessing rapid demand and expansion of Chinese brands specializing in electric cars.
