EU demands tougher UK policy on Chinese cars - FT
The EU calls on the UK to strengthen trade protection against Chinese cars if London wants to secure equal access for British companies to future European industrial support programs.
As reported by the Financial Times, Brussels has made it clear to the British government that the difference in trade policy towards China is becoming one of the main obstacles to including British manufacturers in the Made in Europe initiative.
This policy is intended to give preference to European production in the allocation of some subsidies and public procurement. London is trying to ensure that British cars, chemical products and energy sector goods can also benefit from these opportunities.
However, the EU fears that a UK with a more open market could become a conduit for Chinese products facing trade restrictions directly in the EU. Among the possible conditions for rapprochement is the alignment of British protective measures with European ones, primarily regarding Chinese electric vehicles.
The EU imposed additional countervailing duties on Chinese-made electric vehicles back in 2024 following an investigation into state subsidies. Depending on the manufacturer, the additional duty ranges from 7.8% to 35.3% and is applied together with the standard import tariff. In 2026, the European Commission began reviewing alternative mechanisms for individual manufacturers, including minimum import prices and investment commitments.
The UK after Brexit has not imposed similar additional tariffs on Chinese electric vehicles. FT notes that the base British tariff remains at 10%, which has contributed to the rapid expansion of Chinese brands in the local market.
The growth is also noticeable in UK auto industry statistics. According to the Society of Motor Manufacturers and Traders, from January to August 2026 BYD sales in the country nearly doubled compared to last year, and Chery, Geely and other Chinese brands actively entered the market. Overall, electric vehicles already accounted for more than a quarter of all new car registrations in Britain during this period.
For London, the tariff issue presents a difficult dilemma. On the one hand, the British authorities want to maintain close production chains with the EU and avoid discrimination against its businesses in the bloc's new industrial policy. On the other - the government is trying to attract Chinese investment, including in the automotive sector, and does not want to lose the freedom to independently determine trade policy after Brexit.
According to FT, Brussels considers the simplest way to eliminate such differences is the UK's accession to the EU customs union. However, British Prime Minister Andy Burnham currently excludes the country's return to the customs union or single market.
Therefore, negotiations effectively boil down to finding an intermediate option: Britain seeks access to European industrial programs without a full return to EU trade rules, while Brussels demands guarantees that the British market will not be used to circumvent European protective measures.
Sources: Financial Times, European Commission, SMMT
