Overview
- Reports that emerged Monday say Business Secretary Jonathan Reynolds is drafting a package of potential tariffs on Chinese vehicle imports while the government stresses no duties have yet been imposed.
- Chinese brands have sold more than 300,000 cars in the UK this year and now account for roughly a quarter of the market by volume.
- Brussels has told UK ministers that aligning with EU measures may be required for access to the EU's 'Made in Europe' benefits and the EU already applies levies of up to 45% on some Chinese EVs.
- Ministers are weighing the risk of Chinese retaliation against exporters such as Jaguar Land Rover and the limits of an EV-only tariff that would leave many plug-in hybrids unaffected.
- Any decision will follow industry consultations ahead of upcoming UK‑EU talks and could push Chinese firms toward local assembly or hybrid models while raising prices for some consumers and reshaping supply chains.