UK tariffs on Chinese electric cars: what is being discussed

© A. Krivonosov

The UK has not introduced additional tariffs on Chinese electric cars, but London’s position may change. According to The Times, Business Secretary Jonathan Reynolds is preparing options for new duties on EVs imported from China.

No decision has been made. A government spokesperson separately told Reuters that there are currently no additional tariffs on Chinese EVs. Britain applies the standard import duty of around 10%, while the European Union has imposed additional countervailing duties since 2024 over subsidies to Chinese manufacturers.

That is why the often-cited 45% figure needs context. The European Commission set additional rates of 17% for BYD, 18.8% for Geely and 35.3% for SAIC. Combined with the standard 10% customs duty, the maximum rate on SAIC cars reaches 45.3%, but there is no single 45% tariff applying to all Chinese vehicles.

The debate comes as Chinese brands rapidly strengthen their position in Britain. In summer, 49% of British drivers surveyed by Carwow said they would consider a Chinese-brand car, while in September the Jaecoo 7 became the country’s best-selling car of the month with 10,814 registrations, according to SMMT data. The BYD Sealion 7 and Seal also ranked highly among battery-electric cars.

But the tariff debate is not only about protecting the domestic market. The Times also links it to future European Made in Europe rules. The EU is discussing conditions under which European-origin goods and components could receive advantages in support schemes and public procurement, while the UK is seeking access for its manufacturers. Against that backdrop, concerns remain that low British trade barriers could make it easier for Chinese products to enter European supply chains.

For Chinese companies, new measures could significantly change the economics of UK sales. For now, the absence of additional duties allows vehicles to be shipped from China to Britain without the EU tariff surcharge. In the EU, manufacturers are already responding to restrictions by localising production and increasing hybrid shipments, while an extension of trade measures to Chinese PHEVs is also being discussed.

The next point to watch is an official decision by the UK government. Until it is published, it is too early to speak of a 45% tariff or of specific new rates for BYD, Geely, SAIC or Chery.