China’s Ministry of Commerce has warned that it will take countermeasures if the UK imposes restrictions on Chinese electric vehicles. The statement followed remarks by UK Trade Minister Anas Sarwar that tariff discussions with European partners were ongoing. Beijing urged London to observe World Trade Organization rules and said it would monitor the UK’s actions.
Sarwar has argued that Britain and the EU should coordinate their response to China’s strength in the automotive sector. He did not confirm whether the UK would introduce tariffs, or give any rates or timetable. The UK is also seeking inclusion for British businesses in the EU’s “Made in Europe” policy framework, which could give locally made goods an advantage in some public procurement projects.
The question is part of broader UK-EU trade negotiations. A Financial Times report in September said the EU had pressed Britain to raise duties on Chinese EVs, linking the issue to closer coordination on trade policy. The UK did not add duties in 2024, when the EU introduced five-year countervailing duties of 7.8% to 35.3% on Chinese battery-electric vehicles. With the standard 10% import tariff, the highest combined rate reached 45.3%. UK officials have also highlighted the risk of retaliation, given the importance of export markets to Britain’s automotive industry.