Reform UK deputy leader Richard Tice is calling for a 100% tariff on Chinese electric vehicles, a proposal that could disrupt the pricing, investment plans and stock strategies of UK dealers representing the fast growing new entrants.
Chinese brands including BYD, Chery, Omoda, Jaecoo, Leapmotor, AION and Geely are expanding their UK retail networks, with established dealer groups committing significant capital to showrooms, training, demonstration fleets and aftersales operations.
A tariff at the level proposed by Tice would substantially increase the import cost of affected vehicles unless manufacturers absorbed some or all of the duty.
Speaking to GB News, Tice warned: “Western car manufacturers are heading into the dustbin of history.”
“Unless we put 100 per cent tariffs on all Chinese electric vehicles as the Americans have done, otherwise we will not have a car industry in five to seven years,” he said.
Dealer investment faces disruption
The rapid expansion of Chinese manufacturers has created significant new franchise opportunities for UK dealer groups.
Many dealers have opened dedicated Chinese-brand showrooms or introduced the franchises alongside existing operations so a sudden tariff change could weaken the price advantage underpinning those investments and impact expected sales volumes.
The US raised its tariff on electric vehicles imported from China to 100% in 2024. The European Union took a different approach, applying manufacturer-specific countervailing duties following an investigation into Chinese state subsidies.
Britain has so far declined to follow either model with an additional tariff specifically targeting Chinese EVs but any change could see manufacturers respond by absorbing part of the tariff, reducing specification, changing supply routes or accelerating European and UK production.
Tariff proposal lacks detail
Tice did not explain whether his proposed tariff would apply to vehicles according to their country of manufacture or the ownership of the brand and how tariffs would impact UK manufacturing commitments.
Tice linked his demand to pressures facing Jaguar Land Rover, which has announced plans to cut around 4,000 jobs globally over the next two years through a voluntary redundancy programme.
JLR’s restructuring comes amid a broader combination of weaker profitability, US tariffs, competition from Chinese manufacturers and the continuing financial impact of its 2025 cyber attack.
Tice also criticised Transport for London’s use of Chinese-built electric buses. “Where’s this pro-British manufacturing strategy when we’re sending all our money to Beijing to buy Chinese buses, for heaven’s sake?” he asked.
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