UK Business Secretary Weighs Chinese EV Tariffs as Imports Hit Record and EU Threatens to Exclude Britain from 'Made in Europe' Scheme

Business Secretary Jonathan Reynolds is drawing up options for import tariffs on Chinese electric vehicles (EVs), amid government concern that state-subsidised Chinese cars are being 'dumped' in the UK market, the Times reported on 5 October 2026. The UK has until now resisted following the EU and US in imposing additional barriers on Chinese-built EVs, but government sources told the Times that the 'balance has shifted'. The policy shift has been accelerated by EU pressure. Brussels has indicated that Britain could be excluded from its proposed 'Made in Europe' scheme, which would restrict subsidies, tax incentives, and public procurement benefits to vehicles manufactured within the bloc, unless the UK takes equivalent action on Chinese EV imports. There are concerns in Whitehall that without tariffs, the UK could become a transit corridor through which Chinese manufacturers circumvent European trade restrictions. The EU accounted for 58% of UK car exports in the first half of 2026, compared with around 4% going to China, making access to the European market existentially important for UK-based manufacturers. Almost a quarter of all cars sold in the UK in September 2026 came from Chinese brands, with five Chinese manufacturers now among Britain's 25 largest car brands. More than 300,000 Chinese cars have been sold in the UK so far this year. The EU's own tariffs on Chinese-built battery electric vehicles can reach as high as including existing import duties. European chairman Massimiliano Messina last month warned that Britain risked becoming a 'corridor' for Chinese EVs to enter Europe. Manufacturer exposure to China has reduced significantly, the Times noted, with sales in China falling to 62,400 vehicles in its last financial year from a peak of 146,000 in 2017.