Following the EU’s (European Union) vote to increase tariffs on Chinese-built electric cars, a key figure within the UK government said the country has no plans to follow suit.
According to Automotive News Europe, China exported more than 60,000 electric vehicles to the European Union in September. The shipments jumped to the second-highest level on record, ahead of additional tariffs expected to take effect at the end of this month.
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Major Chinese manufacturer BYD, that will be hit by a 17 per cent tariff in Europe, has responded by saying it is the EU consumer who will suffer by potentially missing out on some of the best new EV technology.
BYD Executive Vice President Stella Li told Automotive News Europe the tariffs were a “short-term challenge” but that the added cost of the levies would be passed on to car buyers.
The major news outlet also said the EU and China have agreed to hold further technical negotiations soon on possible alternatives to the tariffs on China-built electric vehicles due to be imposed on October 31.
However the EU and Chinese Trade Commissions are trying to work through the conflict and are looking at “possible minimum price commitments from Chinese producers or investments in Europe as an alternative to tariffs.”
The United States has also declared tariffs as high as 100 per cent to prevent an influx of Chinese made EVs. While Australia is yet to implement any laws or regulations surrounding Chinese made EVs.
Australia currently has no tariffs for Chinese vehicles that come in under the luxury car tax threshold.
United Kingdom’s response
According to a report by AutoNews, Jonathan Reynolds, the UK Trade Minister, said there have been no complaints raised by local manufacturers that would warrant the Federal Government to introduce similar taxes on Chinese EVs.
“I do have the power as the Secretary of State to make that referral… we keep it under close analysis, but I think it’s important our [automotive] industry is different, and as of yet industry itself has not asked for that referral to the TRA [Trade Remedies Authority],” Reynolds says.
In addition, Reynolds said his “primary concern” is to ensure a thriving trade and export economy for local British producers.
In October 2024, member countries of the European Commission – the executive branch of the European Union – voted in favour of increasing tariffs on Chinese EVs. The tariffs will increase levies on battery-powered cars built in China by up to 45 per cent within five years.