'Made in Europe' deadlock in the automotive industry: Additional tax signal from the UK to Chinese vehicles

According to the Times newspaper, the UK is considering imposing customs duties on imports of electric vehicles originating from China due to concerns that the Beijing administration is flooding the domestic market with state-subsidized cars.

The news highlighted concerns that Chinese manufacturers were selling the vehicles they produced with state support through "dumping" in the British market. In this context, it was stated that Trade Minister Jonathan Reynolds has prepared a comprehensive customs duty package that can be applied to vehicle imports of Chinese origin.

Making a statement on the subject, a British government spokesperson stated that there is currently no customs duty applied to electric vehicles of Chinese origin. "We continue to work closely with the automotive industry to ensure that our approach reflects the national interests of the industry and the United Kingdom," the spokesman said in an emailed statement.

According to the Times report, British ministers are ready to equalize the 45% tax imposed by the European Union on electric cars of Chinese origin. The main reason for this step is to prevent British manufacturers exporting to the EU from being negatively affected by the "Made in Europe" regulations.

The "Made in Europe" policy, which the European Union plans to put into effect, aims to reduce dependence on parts of Chinese origin by giving priority to products produced throughout the union. However, this situation is causing serious concern among British car manufacturers who supply parts to European production chains and sell vehicles to EU member states.

Evaluating the issue last month, Burnham argued that the UK should be considered a "reliable partner" within the scope of the proposed EU rules and warned that excluding the UK from this process could cause great harm to the domestic automotive industry.

In a report published in September, the Financial Times announced that it called on the British side to comply more closely with the EU trade policy and increase the customs duties applied to vehicles of Chinese origin, if Brussels does not want to get stuck in the "Made in Europe" obstacles.

On the other hand, senior government sources speaking to the Times newspaper emphasize that British ministers believe that the final decision on customs duties should be based directly on the UK's national interests, rather than automatically following the EU's steps.