UK EU car tariffs: Britain may align on China EV policy

UK EU car tariffs on Chinese-built electric vehicles could become part of a wider trade arrangement between London and Brussels. According to Politico, Trade Minister Anas Sarwar has said Britain and the European Union must “work together and act in lockstep” to tackle China’s dominance in the automotive sector.

No tariff has been announced, and the government has not set out what alignment would involve. What the sources do show is a direction of travel, set against a UK-EU car trade deal that is due to run out at the end of 2026.

What is changing and when: Britain joins EU China car tariffs talks

Politico described Sarwar’s remarks, made on the sidelines of the German-British Business Summit at Mansion House, as the clearest signal yet that the government is prepared to align with EU tariffs on Chinese electric vehicle imports. It said the aim would be to secure access to Brussels’ Made in Europe industrial programme. Asked whether Britain would consider imposing tariffs on Chinese electric vehicles, Sarwar said discussions with European partners “continue”.

That is not a commitment. It is a minister declining to rule the idea out while negotiations go on, and Politico’s wording is its own reading of his comments.

The second date to watch is the end of 2026. In December 2023 the UK and EU agreed to cancel a planned rules-of-origin increase for electric vehicles and batteries due on 1 January 2024. The existing rules were extended for three years, until the end of 2026, according to the government announcement at the time.

The 2023 announcement does not say what happens after 2026, and the Politico extract does not link the two issues directly.

Who is affected by UK automotive tariffs and China policy

Three groups have most at stake: buyers of electric cars, manufacturers that trade across the Channel, and importers of Chinese-built vehicles. The 2023 government announcement said tariff-free trade depends on products containing a minimum level of EU or UK manufactured content, known as rules of origin. It said the extension prevented 10% tariffs being levied on UK-EU electric vehicle trade and that industry expected savings of up to £4.3 billion for manufacturers and consumers.

To show what 10% means, take a hypothetical electric car priced at £30,000 at the border. A 10% tariff would add £3,000 before any other costs. That is an illustration, not a figure from the sources, and real vehicle prices and tariff treatment vary.

Tariffs on Chinese electric vehicles would affect a different set of products. The sources give no rate, start date or list of models for any UK measure, so buyers of Chinese-built cars cannot yet tell whether their prices would change.

What supporters and critics say

The sources contain no direct argument for or against Britain adopting EU tariffs on Chinese cars. The only on-the-record comment is Sarwar’s call to act “in lockstep”. The clearest industry views come from 2023 and concern keeping UK-EU trade tariff-free.

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, said then: “Maintaining tariff-free trade in EVs will ensure consumers retain the widest and most affordable choice of models, at a time when we need all drivers to make the switch.” Lisa Brankin, chair of Ford Britain, said avoiding unnecessary tariff costs would “help to keep costs down for consumers and businesses”.

Prime Minister Rishi Sunak, who was in office at the time, described the extension as “a pragmatic solution to keep costs down”. Those statements concerned UK-EU rules, not China. Industry reaction to any alignment on Chinese imports has not been published in these sources, and it would be wrong to assume it would match.

What to do now

Nothing needs to change for most drivers today. If you are buying an electric car in the coming months, ask the dealer in writing whether the quoted price could change because of tariffs or trade rules before delivery, and check the cancellation terms on any order.

Businesses that import or export vehicles or batteries between the UK and EU should check how their products meet the rules of origin that apply until the end of 2026. They should also watch for government announcements on what follows. Anyone considering a Chinese-built model should compare the total cost, including any change to import duties, before signing. The next concrete signals will be any published terms from the UK-EU talks and the treatment of electric vehicle rules after 2026, neither of which is set out in the sources.