Tariff Dominoes Fall: Will UK Be Next to Target Chinese EVs?

Former Conservative Transport Secretary Mark Harper has suggested that the United Kingdom (UK) may impose new tariffs on Chinese carmakers if their presence threatens the stability of the British automotive market and its manufacturing sector.

So far, the UK has resisted pressure to follow the lead of countries like Canada, the European Union (EU), and the United States (US), all of which have taken action against Chinese vehicle imports.

Under President Joe Biden’s administration, the US introduced a 100% tariff on Chinese electric vehicles and solar panels, warning that China’s growing market dominance could “kill” the American auto industry.

In a similar vein, the EU implemented trade duties after alleging that Chinese manufacturers benefitted from significantly lower production and sales costs, giving them an unfair market advantage.

However, earlier this month, a European Commission spokesperson revealed that the EU and China had agreed to consider setting minimum prices for Chinese-made electric vehicles (EVs) as an alternative to trade tariffs.

Meanwhile, in the UK, James Court, Director of Public Policy at Octopus Electric Vehicles, told the Everything Electric London conference that a future Labour government would be forced to make a clear decision regarding tariffs.

Court noted that tariffs on Chinese automakers could be introduced to address allegations of dumping—where foreign companies sell products at significantly lower prices than domestic firms.

He also questioned whether the UK would align itself with the EU’s tariff structure or develop its own bespoke levy system.

According to Court, the government lacks a clear stance on the issue, which could have major consequences for Britain’s manufacturing sector.

Is BYD Exiting the UK?

Bono Ge, UK Country Manager for BYD, firmly denied claims that the Chinese automaker is “pulling out” of the EV market in the UK and Europe, characterising the changes as part of a technological upgrade.

Ge stressed that British consumers are choosing BYD and other Chinese brands because they offer superior vehicles, with cutting-edge technology, at more affordable prices than traditional automakers.

Source: GB news

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