Can Britain really afford to diverge from EU tariffs on Chinese EVs?

The European Union’s demand that Britain raise tariffs on Chinese cars exposes an awkward truth about post-Brexit trade. Britain might have left the EU, but it cannot easily escape the bloc’s industrial policy.

According to the Financial Times, EU officials have told Prime Minister Andy Burnham that Britain needs to align more closely with EU trade policy towards China if it wants British manufacturers to avoid discriminatory treatment under the bloc’s proposed “Made in Europe” rules. The proposal is tied to a larger European effort to favour locally produced goods in public procurement and state-supported schemes, including the automotive sector.

The timing is not accidental. China’s car export machine is accelerating. Its electric vehicle (EV) exports in August rose 33 per cent year on year to more than 284,000, while year-to-date exports as of the end of August were more than 2.1 million, up 53 per cent year on year. Almost 95,000 of those exports went to Europe in August.

Following its anti-subsidy investigation in 2024, the EU has imposed countervailing duties ranging from 7.8 to 35.3 per cent on Chinese battery EVs. In contrast, Britain has retained a standard tariff regime that is less punitive towards Chinese cars. That has helped turn the UK into an important market for Chinese manufacturers. Chinese-made cars accounted for 14 per cent of British new-car sales in 2025, according to the European Automobile Manufacturers’ Association.