UK Weighs Tariffs on Chinese EVs, Risking Higher Prices and Trade Spat

Britain is considering matching the EU's tariffs of up to 45% on Chinese-made electric vehicles, a move that would raise prices for consumers and risk retaliatory action from Beijing, The Times reported on October 5, 2026. Business Secretary Jonathan Reynolds is drafting a tariff blueprint that would affect popular imports such as BYD and MG. The government is reportedly preparing to align with Brussels in exchange for access to the EU's "Made in Europe" scheme, which excludes products with more than 30% foreign content from subsidies and public procurement. The UK automotive industry warns the scheme could freeze British manufacturers out of EU markets, which account for over 50% of British vehicle exports. Chinese battery EV sales in the UK rose 36% to a record 99,000 units, according to SMMT data published October 6. Reynolds has said tariffs are "under review" but cautioned that retaliation could jeopardize exports to China, which buys 4% of UK vehicles.