EU urges UK to raise tariffs on Chinese electric vehicles
The European Union is reportedly urging the UK to raise its tariffs on Chinese electric vehicles, according to a Financial Times report citing sources familiar with the discussions. Brussels has signalled that closer alignment of British trade policy with the EU could be a prerequisite for UK companies to benefit from the planned 'Made in Europe' industrial policy under the EU's Industrial Accelerator Act. The EU has imposed additional tariffs on Chinese battery-electric passenger cars since the end of October 2024, while the UK has not adopted these anti-subsidy tariffs and applies the regular 10 per cent duty.
Why it matters: The report illustrates how trade policy and industrial policy are intertwined in EU-UK relations, as the EU links tariff alignment to participation in 'Made in Europe' rules.