Stories

BYD eyes Toyota’s crown, says it can become world’s biggest automaker within five years. (Photo: Reuters)
F
Firstpost•25-09-2026, 11:35
EU Urges UK to Hike Tariffs on Chinese Cars, Align Trade Policy to Prevent Bypass
  • •Brussels has urged Britain to raise tariffs on Chinese cars and align more closely with EU trade policy to prevent Chinese manufacturers from bypassing EU trade barriers through the UK, according to the Financial Times.
  • •EU officials reportedly told British Prime Minister Andy Burnham that closer alignment would help Britain avoid restrictions under the EU's proposed ‘Made in Europe’ policy.
  • •The EU's preferred solution is for Britain to join the bloc's customs union, which would address concerns about ‘Made in Europe’ rules and tariff differences.
  • •The EU is concerned that lower British tariffs could allow Chinese manufacturers to route cars through the UK to access the European market while avoiding higher EU tariffs.
  • •Burnham has warned that excluding the UK from the ‘Made in Europe’ framework could harm Britain's automotive industry, which is closely integrated with European supply chains.

Key Questions Answered

The EU wants Britain to raise its tariffs and align closely with EU trade policy to prevent Chinese manufacturers from bypassing European trade barriers by routing cars through the UK.

According to a Financial Times report citing officials, the EU's preferred solution is for Britain to join the bloc's customs union to address concerns regarding the “Made in Europe” policy and tariff differences.

Prime Minister Andy Burnham stated he would argue for Britain to be treated as a “trusted partner” under the EU's “Made in Europe” framework, warning that exclusion could harm the UK's automotive industry.