UK Holds Off on China EV Tariffs as EU Warns of Retaliation — SkimNews
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- The UK government is resisting EU pressure to impose tariffs on Chinese vehicles, with Business Secretary Jonathan Reynolds warning that levies would 'probably be reciprocated' and cost UK manufacturers sales in China.
- EU officials warned Greater Manchester mayor Andy Burnham that Brussels would impose 'made in Europe' protectionist barriers on British exports unless the UK acts, while the EU already imposes duties of up to 45% on Chinese vehicles—leaving Britain as the only major Western market without such tariffs.
- Chinese brands BYD, Omoda, and Jaecoo more than tripled their UK new car market share to 12% in the first eight months of 2026, helping drive a 12% rise in British new car registrations in the year to September—the strongest annual growth since 2017.
- The Society of Motor Manufacturers and Traders (SMMT) warned the European Commission's 'made in Europe' rules pose an 'existential threat' to British car production, noting the EU accounted for 58% of UK car exports in the first half of the year compared with roughly 4% for China.
- Chery—parent of Jaecoo and Omoda—is in talks to build cars at Nissan's Sunderland plant, with deputy UK chief Victor Zhang insisting 'tariffs can come and go, but we won't change our ongoing investment in the UK' despite Nissan's European chair Massimiliano Messina warning the UK risks becoming a 'Trojan horse' for Chinese market flooding.
- Former Vauxhall chair Tim Tozer called tariffs 'vital' to stop Britain's car sector 'atrophying' at 'last knockings now,' arguing Reynolds was 'whistling in the wind' about mass exports to a 'fiercely nationalistic' Chinese market where buyers favor domestic brands.
Why it matters: With the EU absorbing 58% of UK car exports versus just 4% for China, London's refusal to tariff Chinese vehicles could cost British carmakers their dominant market—yet slapping tariffs now risks deterring Chinese investment like Chery's Sunderland talks and raising prices for UK consumers who've driven registrations to their best growth since 2017.
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