The European Union (EU) is pressuring the UK to impose a maximum 45% tariff on Chinese-made electric vehicles (EVs), warning that if it does not comply, the UK's automotive industry risks being excluded from the 'European-made' supply chain framework, Chinese media outlet Kuai Technology reported on September 29, citing a report from the UK's Financial Times.

In 2024, the European Union (EU) applied a maximum tariff of 45.3% on Chinese-made EVs, adding 7.8% to 35.3% to the conventional 10%, citing China's unfair subsidies.

According to the article, post-Brexit UK has maintained the usual 10% tariff without introducing these additional tariff measures, a situation that is causing concern and dissatisfaction within the EU. This is because Chinese-made EVs transported to the UK could flow into the EU market by utilizing EU trade agreement rules, potentially turning the UK into a 'backdoor' for avoiding high tariffs and threatening the survival of European automakers.

The British government is continuing negotiations with the EU, hoping to keep its automotive industry within the European supply chain framework. Meanwhile, the EU is using the unification of tariffs on Chinese-made EVs as a bargaining chip, demanding that the UK also strengthen import barriers against China as a condition for continuing cooperation in the supply chain. If the UK maintains its current low-tariff policy, the EU is highly likely to tighten rules of origin, restricting duty-free exports of UK-made cars to the EU. On the other hand, if the UK compromises and raises tariffs, the pace of EV adoption within the country will slow down. The UK has few indigenous car brands, and many luxury car manufacturers are under the umbrella of foreign capital. Applying a high tariff of up to 45% would not only directly push up consumer purchase costs but could also provoke retaliatory measures from China, potentially harming other UK export industries.

The share of Chinese-made EVs in the UK's new car market has reached 16%, with several brands such as MG, BYD, and Chery making significant advances. In May, BYD surpassed rivals like Tesla and Volkswagen to become the best-selling EV brand in the UK.