UK Open to Chinese EV Tariffs to Join EU 'Made in Europe' Deal — SkimNews
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- Downing Street said it was "premature to speculate" on terms of any deal but stressed the UK "keeps all tariffs under review," leaving open the option of imposing Chinese EV tariffs to join the EU's Industrial Accelerator Act.
- A Franco-German proposal would require the UK to dynamically align with the EU's 2024 Chinese EV tariffs and broader trade defence measures in exchange for inclusion in the Made in Europe package, after France dropped its opposition to British membership.
- The Chinese embassy in London said it was "firmly opposed to any discriminatory practice involving tariff hikes or restrictive measures on Chinese products" and had raised "serious concern" with the UK side.
- Chinese EV brands are surging in the UK market — BYD sales up 78% year-on-year in September, Chery up 660%, and Changan up more than 3,000% in market share.
- EU lawmakers are expected to finalise the Industrial Accelerator Act by end of 2026 or early 2027, with MEPs having already tabled 5,100 amendments, including one giving Andy Burnham time to secure a UK deal.
- Mercedes-Benz CEO Ola Källenius, president of European car trade body ACEA, warned that locking the UK out of the legislation would amount to a "deliberate choice" by EU leaders to "hurt" the car industry across the bloc.
- Labour's Liam Byrne, chair of the parliamentary business committee, called imposing tariffs on Chinese EVs "a small price to pay" to save the UK and EU auto industry and accused the government of having no coherent China strategy.
Why it matters: With 80% of UK-made cars exported — more than half to the EU and 6% to China — the cost of being locked out of European supply chains is existential for British carmakers, explaining No 10's hedge. For UK consumers, tariffs would likely push up prices; for surging Chinese brands, it would cap Europe's fastest-growing EV market.
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