The Guardian
· collected 2026-10-05 · by Lisa O’Carroll, senior correspondent
The UK is contemplating imposing tariffs on imported Chinese cars to align with new EU trade policies aimed at protecting domestic manufacturing industries. This move could help the UK qualify for upcoming “Made in Europe” legislation that requires companies to source components from within the continent. The decision comes as the EU has already imposed up to 45% tariffs on Chinese vehicles since October 2024, and a similar step by the UK would likely strain its relationship with China.
Written locally by qwen2.5:14b on 2026-10-05,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
Britain is considering implementing tariffs on Chinese electric vehicle (EV) imports, following concerns that Beijing is flooding the market with heavily subsidized cars. Business minister Jonathan Reynolds is working on a tariff package amid fears that Chinese manufacturers are "dumping" vehicles into Britain. The EU has already imposed a 45% tariff on Chinese EVs to reduce reliance on Chinese components and prioritize European-made goods. British officials, however, have yet to confirm the tariffs, stating they continue to engage closely with industry stakeholders to align national interests.
The surge in demand for Chinese EVs has left some dealers overwhelmed with unsold inventory, while others see a potential impact on UK companies exporting into the EU due to proposed "Made in Europe" policies. Prime Minister Andy Burnham faces pressure from Brussels to impose similar tariffs to avoid punitive measures under the new scheme. The decision comes as nearly one-quarter of cars sold in the UK this September were Chinese models, with the Jaecoo 7 topping sales charts for the second time in 2026, securing over 10,800 deliveries.
Written for “UK Tariffs Chinese EVs” on 2026-10-05,
grounded in this article and the 3 other(s) covering the same event.
The UK is considering whether to impose tariffs on Chinese car imports to align itself with the EU and strengthen its case to be included in new legislation designed to protect the European manufacturing sectors including autos and chemicals.
asserted
UK → consider → autos
It is understood the EU has raised the question of tariffs with the UK as part of the discussions on the upcoming “Made in Europe” legislation, known as the Industrial Accelerator Act.
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EU → understand → Act
The UK is an outlier in choosing not to put import taxes on Chinese vehicles, even as the US has shut them out almost entirely.
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US → choose → them
Brussels believes the UK would have to introduce tariffs to create a level playing field to qualify for inclusion in the scheme and match the tariffs of up to 45% it has levied on Chinese cars since October 2024.
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it → believe → October
Imposing tariffs on Chinese cars would probably prompt a hostile response from Beijing and test Andy Burnham’s desire for a reset in the post-Brexit relationship with the EU.
It would also involve a lengthy World Trade Organization process.
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It → impose → process
It took the EU 13 months between the launch of the investigation into state subsidies in production and transport lines and finally imposing tariffs in October 2024.
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It → take → October
The UK has been lobbying hard to be included in the upcoming legislation, which will require manufacturers to procure components from the continent to protect against the growing presence of China in supply chains, particularly the auto and chemicals sector.
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which → lobby → chains
If tariffs were to be imposed, the move would be a break with the previous government policy.
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move → impose → policy
Keir Starmer’s government positioned itself as a strong ally to China, viewing it as an important source of economic growth rather than a risk to British manufacturing.
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government → position → manufacturing
The UK has consistently argued it does not need trade barriers in the way Brussels does because it does not have the huge trade deficit – now running at more £1bn (€1.18bn) a day – that the EU is struggling to contain.
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EU → argue → that
A report in the Times quoted a senior government source saying that the risk assessment had since changed given the danger Made in Europe posed to UK car industry, whose biggest market for finished products and parts is the EU.
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market → quote → products
China’s increasing trade with the EU – not only in finished products such as cars but also in components – is causing deep concern about cannibalisation of native industries in European capitals.
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trade → increase → capitals
The EU trade commissioner, Maroš Šefčovič, is visiting Beijing this Wednesday for talks over a reset in trade relations.
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commissioner → visit → relations
Experts said last week the UK car industry faced a “difficult trade-off”, with Chinese investment a potential “lifeline” for carmakers, while access to Europe would also be “crucial” for smaller manufacturers.
But Nissan’s chair in Europe, Massimiliano Messina, has recently said that “Europe cannot have a Trojan horse where the Chinese are going to flood the market” through imports via Great Britain.
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Chinese → say → Britain
Nissan is in talks with the Chinese company Chery to manufacture cars in its Sunderland plant, but this would still align with EU’s Made in Europe policy.
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this → manufacture → policy
The EU views Chinese manufacturers based in Europe, employing EU staff, as less of a threat to its indigenous industries.
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EU → view → industries
Chinese brands made by BYD in Hungary, for example, will not be subject to import duties.
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brands → make → duties
Brands such as BYD, Leapmotor and Jaecoo more than tripled their share of the UK new car market 2026, reaching 12% of sales, according to the latest industry figures.
uncertain
Brands → triple → figures
BYD has almost doubled its share of the UK market in September 2026 compared with September 2025 with 5.75% of the market, according to figures from the Society of Motor Manufacturers and Traders released on Monday.
uncertain
BYD → double → Monday
In the year to date, BYD’s share has gone up from 2.2% to 3.93% with 68,000 BYD cars sold up to the end of September, closing in on BMW, which shifted 91,000.
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which → go → 91,000
Jaecoo’s share has rocketed, increasing by 223%, with 58,000 new cars sold in the year so far, while Leapmotor sales have soared by a phenomenal 765% – up from about 1,500 cars sold in 2025 to just more than 13,000 in the year so far.
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sales → rocket → year
A UK government spokesperson said: “We have not put tariffs on Chinese EVs.
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We → say → EVs
We continue to engage closely with industry so that our approach reflects the sector’s and UK’s national interests.”
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approach → continue → sector
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