UK will not impose tariffs on Chinese vehicles, Reynolds says
The UK will not change its trade rules under pressure from the EU or impose tariffs on Chinese vehicles, Business Secretary Jonathan Reynolds said. He said any future trade-defence decision would be based on the needs of Britain’s export-led automotive sector.
Image: theguardian.com · Author: https://www.theguardian.com/profile/kiran-stacey · source articleEditorial excerpt for news reporting
The UK will not impose import tariffs on Chinese vehicles in response to calls from other countries, Business Secretary Jonathan Reynolds said during a trade trip to India.
Reynolds said the government examined the issue in 2024 and would keep it under review, but decisions would depend on the interests of British industry. He described the UK automotive sector as export-led.
The EU imposed tariffs of up to 45% on Chinese electric vehicles in 2024. Last Friday, it also agreed a quota of 350,000 Chinese hybrid cars a year.
London rejects “back door” claim
Brussels has raised concerns that the UK could become a route for Chinese manufacturers into the European market. Reynolds rejected that argument, saying no major Chinese manufacturer currently operates in the UK automotive sector to produce vehicles there for sale into the EU.
Nissan has agreed to consider building cars in northern England for Chinese company Chery. Reynolds also acknowledged that sanctions on Chinese goods could be considered in the future.
He has previously warned that Chinese retaliation could damage British companies, including Jaguar Land Rover.
Issue ahead of UK-EU summit
The comments came before the UK-EU summit, which Andy Burnham confirmed would take place on 20 November in Brussels. Chinese tariffs are not formally on the agenda, but British officials hope to use the talks to influence new European trade rules.
The Made in Europe rules are intended to protect European companies from subsidised Chinese imports, while British manufacturers fear being excluded from supply chains. The sides are also discussing trading terms for electricity, emissions, food and drink.
Reynolds said excluding the UK from the scheme would also harm the EU because of integrated supply chains.
UK-India trade plans
During a two-day visit to Delhi and Mumbai, Reynolds unveiled UK-India investments that officials said would be worth more than £1bn over 15 years to the UK.
He said the free-trade agreement with India, struck last year, would become defunct if the UK rejoined the EU. After Indian tariffs on Scotch whisky fell from 150% to 75%, British officials are seeking wider trade in services and mutual recognition of legal qualifications.
What we know
- London will not impose tariffs on Chinese vehicles under EU pressure.
- The EU applies tariffs of up to 45% to Chinese electric vehicles.
- The UK-EU summit is scheduled for 20 November in Brussels.
- UK-India investments could be worth more than £1bn to the UK over 15 years.
Trust: Single source
- The story relies on one publisher. A second independent confirmation has not been established from the cited sources.
- Sources: The Guardian Business.
COMMUNITY
Discussion
Sign in to join the discussion.
Loading comments…