The British government is assessing the possibility of imposing tariffs on electric vehicles imported from China, as concerns grow that the UK market is being flooded with cars subsidized by the Chinese state.
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The Times reported that British Business Secretary Jonathan Reynolds is preparing a package of potential tariff measures for Chinese electric vehicles.
The authorities’ concerns are mainly related to the possibility that Chinese manufacturers could export government-supported vehicles to Britain, putting significant pressure on the domestic industry.
However, a British government spokesperson told Reuters that no tariff has so far been imposed on electric cars imported from China.
“We continue to work closely with the industry to ensure that our approach reflects the national interests of the sector and the United Kingdom,” the spokesperson said.
The Times reported that British ministers are examining the introduction of tariffs as a way to mitigate the effects of the high tariffs that the European Union has imposed on Chinese electric vehicles.
Another concern for London is the EU policy known as “Made in Europe,” which aims to reduce Europe’s dependence on Chinese components and favor products manufactured on the continent. According to the British government, this approach could harm the domestic automotive industry.
Many British companies are closely linked to European supply chains and export vehicles or vehicle parts to EU countries. For this reason, the government wants to ensure that British businesses are not left out of these production networks.
British Finance Minister John Healey has called on the European Union not to exclude Britain from initiatives aimed at protecting the European industry from unfair Chinese competition.
Healey has called for stronger cooperation between Britain and the EU in the fields of technology, defense and manufacturing. At the same time, he has warned that the new rules must not become additional obstacles for British companies.
Sources cited by the BBC said that the British government aims to limit the economic consequences of Brexit and improve relations with the EU without harming the country’s economic interests.
The automotive industry has also expressed concerns about the potential impact of these measures. Nissan said that production in Britain and the EU is “deeply interconnected” and that restricting public support only to production within the EU could harm competitiveness and supply chains at a time when Europe is accelerating its transition to electric vehicles.
