Britain says it will not impose tough tariffs on electric cars imported from China

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UK trade minister Jonathan Reynolds has hinted he will not follow the EU in imposing heavy tariffs on electric cars imported from China, adding that he remains “vigilant”.

Speaking at a meeting of G7 trade ministers in Italy, Reynolds said he had discussed the EU’s decision with his European colleagues. tariffs on Chinese electric vehicles as a way to counter what the bloc sees as unfair state subsidies.

But the new one Labor The minister told colleagues that, despite his concerns, he had no immediate plans to launch a formal investigation into electric vehicle imports from China.

“I don’t rule anything out but if you have an export-oriented industry, the decision you make [has to be] “This is the right choice for that area,” Reynolds said.

UK government insiders note that the UK car industry has not formally asked the Trade Remedies Authority to open an investigation into China. Tram imports, a move that would require the UK to launch an investigation.

One said: “The minister has made it clear that he will take the necessary steps to protect the UK car industry.” But they added that Reynolds had not yet reached the stage of ordering an investigation.

The UK exported a total of around 700,000 cars in 2023, including models from Nissan, Jaguar Land Rover and Mini.

According to data from the Society of Motor Manufacturers and Traders, just 7 percent of these went to China, while 60 percent went to the EU27, suggesting the UK would be less vulnerable than other countries, such as Germany, to retaliation from Beijing.

However, the UK’s domestic electric vehicle market is dominated by Chinese carmakers, including Tesla, BMW and MG – owned by China’s SAIC Motors.

In June, Brussels announced it would raise tariffs on Chinese-made electric vehicles to as much as 38 percent following an anti-subsidy investigation. This will affect Chinese brands exporting to Europe as well as Western brands manufacturing electric vehicles in China.

Reynolds was speaking after meeting EU trade commissioner Valdis Dombrovskis. The minister said he was “looking forward to rekindling a close working relationship between the UK and the EU based on goodwill and mutual benefit”.

Reynolds and Dombrovskis also discussed WTO reform and overcapacity in global markets.