The UK is set to follow the European Union and impose a 45% tariff on Chinese electric vehicles to avoid problems with “Made in Europe” labelling rules, The Times reported.
According to the newspaper, the potential tariffs are being prepared amid claims that Beijing is “dumping” by supplying state-subsidized vehicles to the UK.
In September, almost a quarter of all cars sold in the UK were Chinese models. Chinese brands now occupy five places in the top 25 most popular brands. The Jaecoo 7 topped the list, with almost 11,000 of these vehicles sold in the British Isles in September.
Brussels had previously asked London to increase tariffs on cars from China. Trade barriers under the European Commission's "Made in Europe" economic initiative, the EU has warned, will hit key British exports. The EU's new economic strategy aims to give EU manufacturers priority in subsidies and public procurement in a bid to protect the bloc from Chinese competition.
Last week, the Society of Motor Manufacturers and Traders (SMMT) said that the European Commission's rules, in particular requirements restricting access to subsidies, tax breaks and public procurement for cars made outside the EU, posed an existential threat to the British car industry. According to SMMT chief executive Mike Hawes, “the UK and EU car industries are deeply integrated, so effectively excluding UK-made cars from their largest market would inevitably harm both countries“.