China has warned the United Kingdom that it will take countermeasures if London imposes restrictions on Chinese electric vehicle imports, as British officials continue discussions with European partners about potential tariffs.
China’s Ministry of Commerce said on Monday that automotive cooperation between the two countries benefits both sides. It urged the UK to comply with World Trade Organization (WTO) rules and reconsider any move to restrict Chinese electric vehicles.
“China will closely monitor the UK’s actions. If the UK insists on imposing restrictions on Chinese EVs, China will take firm countermeasures to safeguard the legitimate rights and interests of its industry,” the ministry said.
The warning follows comments by UK Trade Minister Anas Sarwar, who said Britain and the European Union should coordinate their approach to China’s position in the automotive sector. According to Politico on October 15, discussions with European partners on possible tariffs remain ongoing. Sarwar did not specify proposed tariff rates or an implementation timetable.
UK Weighs Trade Coordination With the EU
The discussions come as Britain seeks to maintain access for its automotive businesses to the EU’s proposed Made in Europe framework.
The EU’s Industrial Accelerator Act would give qualifying products preferential treatment in certain public procurement projects. British companies could face disadvantages if UK-made products are excluded from the framework, prompting London to seek arrangements that would recognise British businesses.
Politico described Sarwar’s comments as a signal that the UK government was considering closer alignment with EU trade measures on Chinese electric vehicles. However, no decision to introduce matching tariffs has been announced.
The issue has also featured in broader UK-EU trade discussions. The Financial Times reported on September 25 that the EU had called on Britain to raise tariffs on Chinese electric vehicles, linking the treatment of British goods with closer coordination on trade policy.
Britain Previously Declined to Match EU EV Duties
The UK did not introduce additional tariffs on Chinese electric vehicles when the EU adopted its measures in October 2024.
The EU imposed definitive countervailing duties on battery-electric vehicles imported from China for five years. The additional rates introduced at the time ranged from 7.8% to 35.3%, depending on the manufacturer. Combined with the EU’s standard 10% import tariff, the highest total rate reached 45.3%.
Any UK decision to introduce similar measures would represent a change from its previous approach. The potential scope, tariff structure and timing of any new UK restrictions remain unclear.
Export Exposure Shapes UK Automotive Policy
The debate also reflects the UK automotive industry’s reliance on international markets. British manufacturers export vehicles and components to multiple destinations, including the EU, making changes to trade policy relevant to both imports and export relationships.
In September, UK Business Secretary Jonathan Reynolds told Politico that the country’s automotive sector depended on exports and that tariff decisions needed to account for possible effects on overseas markets.
China’s latest warning adds a further consideration for British policymakers as they assess whether to align more closely with the EU on electric vehicle trade measures. For now, discussions are continuing, and the UK government has not confirmed whether it will impose additional tariffs on Chinese EVs.
