Chinese brands could be hit with huge tariffs on electric cars in bid to protect UK manufacturers
The UK could introduce tariffs against China in order to protect UK industry, an expert has claimed, as the world reacts to US President Donald Trump’s sweeping auto tariffs.
The UK has so far resisted the temptation to slap China with tariffs on vehicles, despite international partners doing so, including Canada, the European Union and the United States.
During the Biden Presidency, the United States slapped China with a huge 100 per cent tariff on electric vehicles and solar cells after warning China’s influence could “kill” the US auto industry.
The European Union introduced similar levies on Chinese manufacturers following accusations that companies were benefitting from better sales because of much lower manufacturing and selling costs.
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The UK could still place tariffs on Chinese automotive manufacturers
PA/REUTERS
Following an investigation, major brands were slapped with tariffs including Tesla (7.8 per cent), BYD (18 per cent), Geely (18.8 per cent) and SAIC (35.3 per cent).
Companies which cooperated with the EU’s investigation are subject to a duty of 20.7 per cent, while non-cooperating companies face a tariff of 35.3 per cent.
However, earlier this month, a European Commission spokesperson said the EU and China had agreed to look into setting minimum prices of Chinese-made electric vehicles instead of tariffs.
It comes as cooperation between the EU and China has strengthened in response to President Donald Trump’s tariffs on all foreign vehicle imports and the damage it could do to automakers and the market.
Former Conservative Transport Secretary Mark Harper hinted that the UK could introduce new tariffs against Chinese car brands if they threaten the stability of the UK car market and manufacturing sector.
Speaking at Everything Electric London, James Court, Public Policy Director at Octopus Electric Vehicles, said the Labour Government would need to make a decision regarding tariffs.
The expert said that he could envision tariffs being introduced against Chinese manufacturers to crack down on accusations of “dumping”. This is when foreign manufacturers sell vehicles for a far cheaper price than existing companies.
Court questioned whether the UK would follow the EU’s tariff limit or opt for a unique levy. He said the Government doesn’t instinctively know which way to go since it could have huge repercussions for the British manufacturing industry.
BYD is one of the fastest-growing electric vehicle brands in the UK REUTERS
BYD’s UK Country Manager, Bono Ge, dismissed claims that the brand was “dumping” electric vehicles in the UK and Europe, likening it to improving technology.
He said that no one considers Apple to be dumping, because they produce better technology than the likes of Nokia, who dominated the phone sales charts 15 or 20 years ago.
Ge added that drivers were choosing BYD and other Chinese brands because they offer a superior vehicle with better technology at a more affordable price compared to legacy brands.
