The Government will resist pressure to impose higher tariffs on Chinese EVs, Business Secretary Jonathan Reynolds has reportedly indicated.
Reynolds told The Guardian that decisions on import duties would reflect UK interests rather than requests from other countries. However, he left open the possibility of future action.
His comments follow speculation that Britain could align its approach with the EU, which imposes combined duties of up to 45.3% on Chinese-built EVs, depending on the manufacturer.
The UK currently applies its standard 10% import duty to Chinese-made cars.
Reynolds said: “I just want to be clear: when we make any trade decision in terms of trade defence tariffs in relation to the EU, that’s based on the UK interest – it’s not based on any other country asking for that.”
He added: “In 2024, we looked at this issue carefully, and we keep it under review depending on what the needs of industry are … But it comes down to what is the fundamental nature of the UK automotive sector. It’s an export-led sector, so that’s what I’ve got to take into account.”
Earlier reports had suggested Reynolds was preparing potential tariffs amid concerns about the growing presence of state-supported Chinese manufacturers in the UK.
Dealers warn of investment and pricing risks
Automotive Management’s previous reporting highlighted the competing interests of British manufacturing, dealers investing in Chinese franchises and customers seeking competitively priced vehicles.
Former Hyundai UK president and chief executive Tony Whitehorn warned that introducing additional duties after Chinese brands had established extensive dealership networks could provoke a backlash from UK franchise partners.
He and ICDP managing director Steve Young also suggested manufacturers could absorb some additional costs, limiting the impact on their price competitiveness.
Young identified tariffs as a possible bargaining point in negotiations over the treatment of UK automotive production within European arrangements, rather than an agreed condition.
Carwow Group chief executive John Veichmanis warned that higher duties could increase list prices, weaken finance offers and create uncertainty for dealers. He called for a compromise that protects British manufacturing while maintaining affordable choice.