Headline: UK Considers EU-Style Tariffs of Up to 45% on Chinese Cars

Date: 16 October 2026

Tags: UK Politics, Automotive Industry, International Trade, Economy

Summary:

- The UK Government is considering adopting European Union tariffs on Chinese electric and hybrid vehicles to protect domestic manufacturers.

- Trade Minister Anas Sarwar called for closer UK-EU cooperation in responding to China's rapidly expanding automotive industry.

- Reports suggest European manufacturers are encouraging Britain to introduce tariffs of up to 45% on Chinese vehicle imports.

- Chinese brands, including BYD, Chery, Jaecoo and Omoda, have captured over 10% of the UK car market this year.

- The Jaecoo 7 became Britain's best-selling vehicle in September, recording almost 11,000 new registrations.

- Three of the UK's 10 most popular electric vehicles in September were manufactured by Chinese brands.

- Aligning with EU tariffs could help Britain gain access to European manufacturing subsidies through the proposed Industrial Accelerator Act.

- The EU's proposed Made in Europe scheme would require at least 70% European production content for qualifying vehicles.

- UK automotive manufacturers face growing competition from cheaper Chinese vehicles, potentially affecting jobs and domestic production.

- The Government emphasised that any trade restrictions would be determined independently according to Britain's economic and industrial interests.

Why this matters: Higher tariffs could protect British and European car manufacturers from growing Chinese competition but may increase vehicle prices for UK consumers. Closer alignment with EU trade policies could also strengthen Britain's access to European automotive investment and manufacturing incentives.

What’s next: The UK Government will continue discussions with European partners about potential tariffs and closer automotive cooperation. Ministers must decide whether to introduce trade restrictions while balancing consumer affordability, domestic manufacturing interests and international trade relationships.