Reports have claimed the UK Government are considering moves to place tariffs on Chinese electric vehicles, ahead of Prime Minister Andy Burnham meeting European leaders.
According to various reports in the Daily Telegraph, The Times, Financial Times and elsewhere, Business Secretary Jonathan Reynolds has asked officials to look at potential tariffs on Chinese car imports, and Burnham is weighing up the move ahead of meeting EU leaders.
It comes as the EU’s ‘Made in Europe’ rules are set to be debated at the end of the year, with the UK eager to be a part of the programme and avoid potential trade barriers.
But there is concern that such a move could see reciprocal tariffs from China, which could be damaging for British vehicle manufacturers.
The Society of Motor Manufacturers and Traders (SMMT) has long-argued for a resolution for the UK to the ‘Made in Europe’ provisions, which, as drafted, would see future UK-built vehicles denied access to incentives available to EU-built products, including support for greener corporate fleets and CO2 super credits – and be excluded from EU Member State procurement, despite the UK’s role in Europe’s automotive supply chain.
Such an outcome would put UK production at “a competitive disadvantage in its largest market, reducing demand for UK-built vehicles and, in turn, reducing UK sourcing of EU components, goods and services”, the SMMT has said.
It comes as Chinese EVs are now some of the most popular cars being bought in the UK. Nearly a quarter sold in September this year were Chinese, and are five of the top 25 brands.
According to The Times, a move to introduce tariffs would “smooth talks at the summit” between Burnham and European leaders, but UK Government sources told the newspaper that “any decision had to be in the best interests of the UK rather than automatically accepting EU diktats”.
Image courtesy of Green Car Guide
