Britain set to levy tariffs on Chinese electric cars, The Times reports

Britain Weighs Tariffs on Chinese Electric Cars to Protect Local Industry

Britain's Consideration of Tariffs on Chinese Electric Vehicles

Oct 4 (Reuters) - Britain is considering imposing tariffs on Chinese electric vehicle imports amid concerns that Beijing is flooding the market with state-subsidised cars, the Times newspaper reported on Sunday.

Government Response and Industry Engagement

Business minister Jonathan Reynolds is drawing up a package of potential tariffs on Chinese vehicle imports, the report said, citing concerns that Chinese manufacturers are "dumping" subsidised vehicles into Britain.

Reuters could not immediately verify the report.

Asked to comment, a spokesperson from the British government told Reuters no tariffs have been imposed on Chinese EVs.

"We continue to engage closely with industry so that our approach reflects the sector’s and UK’s national interests," the spokesperson said in an email.

Alignment with European Union Policies

Potential for Matching EU Tariffs

British ministers are ready to match the European Union's 45% levy on Chinese electric cars, the Times said, to avoid the pain of "Made in Europe" proposals, which could impact UK companies selling into the EU.

Implications of the "Made in Europe" Policy

The EU's "Made in Europe" policy is aimed at reducing reliance on Chinese components by prioritising European-made goods, raising concerns among British automakers that supply parts into European manufacturing chains and sell vehicles across the bloc.

Concerns from UK Officials

Burnham said last month he would make the case that Britain should be treated as a "trusted partner" under the proposed EU rules, warning that excluding the UK could damage its car industry.

Pressure for Closer EU Alignment

The Financial Times reported in September that Brussels had urged British Prime Minister Andy Burnham to align more closely with EU trade policy and raise tariffs on Chinese cars if Britain wants to avoid the "made in Europe" barriers.

Decision-Making Based on National Interest

According to the Times, citing senior government sources, ministers believe any decision on tariffs should be based on Britain's national interest rather than automatically following the EU's lead.

(Reporting by Harishankar Manoj in Bengaluru; Editing by Edmund Klamann and Nia Williams)