US said 'big no' to Chinese EVs, UK welcomed them, now faces 'Made in Europe' fears
The UK is facing a policy dilemma regarding Chinese electric vehicles as it considers aligning with EU tariffs to protect its market access. While the US has implemented a 100% tariff, the UK currently maintains a 10% duty, leading to concerns about 'Made in Europe' trade barriers.
Why it matters
This decision impacts the UK's trade relations with both China and the EU, highlighting the complexities of global automotive supply chains and protectionist trade policies.
Chinese EVs gained ground in the UK despite US resistance. Now, Britain is reportedly facing pressure to rethink its approach as the European Union (EU) considers "Made in Europe" rules that could hurt companies selling into the bloc. While the US has effectively kept Chinese electric cars out with a 100% tariff, the UK has allowed them to enter with only its standard 10% import duty. But Britain's more open approach is now creating a policy dilemma as the EU considers rules that could disadvantage companies selling products made outside the bloc.Chinese EVs incur no extra tariff specific to China in Britain, making the UK one of the major foreign markets without such a tariff. In addition, Japan and Norway also don’t have any extra tariff.
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