Britain is weighing tariffs of up to 45 percent on Chinese electric cars, mirroring the EU duties. The trigger isn’t a sudden shift to protectionism. Brussels is threatening London with the loss of access to the EU market if nothing changes.
Chinese brands are soaring in the UK, benefiting from tariff-free access. With the Jaecoo 7, ironically called the ‘Temu Range Rover’, leading as the best-selling car in the country, the Chinese share is heading toward a quarter of the market (currently 23%).
Soaring in the charts
No other Western European market has been this open to Chinese cars. BYD took 5.75 percent of the September market, nearly double its share a year earlier; Jaecoo’s year-to-date share is up 223 percent; Leapmotor’s sales have grown 765 percent to over 13,000 cars. But now the UK is considering closing the door because Brussels is asking for it.
The pressure comes from the EU’s planned Industrial Accelerator Act, the legislative vehicle for its ‘Made in Europe’ policy. The rules would restrict subsidies, tax breaks, and public procurement to vehicles built with European content, including batteries, aiming to cut dependence on Chinese components.
Not deaf
To qualify as a partner under the scheme, Brussels is demanding that Britain match EU tariffs on Chinese cars. EU officials fear the UK could otherwise become a backdoor for Chinese exports into the single market.
Britain is not deaf to the remarks. Prime Minister Andy Burnham wants the UK treated as a ‘trusted partner’ under EU legislation. The reported tariff package appears to reflect the price for that status.
Officials have reportedly calculated that being shut out of ‘Made in Europe’ would hurt far more than potential Chinese retaliation against Jaguar Land Rover, Britain’s biggest car manufacturer. The EU accounted for 58 percent of British car exports in the first half of 2026. With China accounting for only 4%, the UK’s stakes are clear.
Hybrids untouched?
Victor Zhang, the UK chief of Chery’s Jaecoo and Omoda brands, rejects the threat entirely. “Most of what we sell are super-hybrids, not the cars that those tariffs are about, and the cars we sell here stay here,” he said recently.
The side effects of the EU’s EV tariffs have pushed Chinese exporters toward hybrids and plug-in hybrids, but these are now under review. Brussels has warned China to send less electrified models, a diplomatic warning before a broader tariff scheme could be voted.
Postponing Made in Europe
If the UK adopts tariffs, they would raise prices for British buyers, who have flocked to cheaper Chinese models. However, imposing British levies would take time. The EU took 13 months from the investigation to the imposition of duties. However, the UK might ultimately have more time. The auto lobby is pushing for a delay of the Made in Europe rules through its ACEA organization.
European carmakers need more time to develop a battery cell manufacturing footprint. After backing away from their own projects, carmakers like Volkswagen and Stellantis are turning to their ASEAN partners to build and manage European battery manufacturing facilities.
