Stories
UK Eyes Chinese EV Tariffs Amid EU Pressure, Threatening 23% Market Share
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CNBC TV18•05-10-2026, 08:01
UK Eyes Chinese EV Tariffs Amid EU Pressure, Threatening 23% Market Share
- •The UK is considering imposing import tariffs on Chinese electric vehicles to align with EU demands and avoid being cut from "Made in Europe" local-content rules.
- •Chinese brands, including BYD, MG, and Jaecoo, captured 23% of new-car sales in the UK in September, with the Jaecoo 7 becoming the best-selling new model.
- •UK officials are concerned about potential Chinese retaliation against Jaguar Land Rover but deem exclusion from the "Made in Europe" mechanism more damaging.
- •The EU's proposed local-content rules could restrict subsidies to vehicles manufactured within the bloc, potentially impacting UK operations of automakers like Land Rover and Nissan.
- •Despite rising trade barriers, Chinese automakers are unlikely to be deterred from their export push due to fierce domestic price competition, with some planning local production.
Key Questions Answered
The UK is preparing to impose import levies on Chinese electric vehicles to meet a key demand from the European Union and avoid being excluded from the bloc's Made in Europe local-content rules.
Chinese brands expanded quickly in the UK without facing the additional tariffs present in the EU, grabbing 23% of British new-car sales in September.
The Jaecoo 7 sport utility vehicle, produced by Chery Automobile Co. and starting at around £30,000, became the country’s best-selling new model.
