7:32 am, October 12, 2026
There have been further hints from the government that is planning tariffs for Chinese electric cars.
In an interview, business secretary Jonathan Reynolds told The Times that Britain should not hit its climate change targets by importing cheap Chinese vehicles at the cost of its domestic car makers.
Reynolds said the impact of soaring Chinese car sales – which took a quarter of all sales during the key 76-plate September market – were under ‘close review’, but that there were no ‘immediate’ plans to implement tariffs.
However, it is thought the government is carefully considering raising tariffs on Chinese cars in lock step with Europe as Britain faces being cut from the ‘Made In Europe’ scheme. Europe currently levies tariffs of 45% on Chinese electric cars.
Without access to the crucial scheme, car manufacturers who build cars in Britain could be frozen out of the European policy which aims to counter Chinese makers by limiting green subsidies, public contracts and corporate fleet incentives strictly to cars made within the EU.
British-made cars face being written out of these financial perks and with some 60% of cars made in the UK currently heading to Europe, this could be devastating to British-based car makers.
Nissan, Jaguar Land Rover, Mini and Stellantis all build cars and vans in the UK and would face varying degrees or pain if they were excluded from the European scheme.
JLR also relies heavily on access to China for sales of its luxury off roaders. In the first half of 2026, 58% of the cars made in the UK headed to Europe with 4% making their way to China.
Reynolds said: ‘There’s a balance of interests there to weigh up, but I do think it’s very important people understand that the fundamental priority has got to be retaining access to our export markets.’
Prime minister Andy Burnham was in Germany last week where he was told by the German chancellor Friedrich Merz that rejoining the EU would not be possible unless the UK implements tariffs on Chinese EVs.
The Car Dealer Podcast featured a debate on Chinese cars in its most recent episode, released this weekend.
You can listen to what the team had to say in the video below which will start at the relevant section.
Eden Motor Group CEO Graeme Potts said that if tariffs were put in place on Chinese cars he did not think it would have an impact on sales.
He said: ‘If you research the prices being charged to retail customers in China compared to even what we perceive to be heavily forced and supported pricing here, there’s still lots of head room.
‘Tariffs in the short term, given that the stance of these companies currently is getting a footprint in Europe rather than economic return in the short term, means [tariffs] will be absorbed.’
Carwow said that half of its users are now actively considering a new Chinese car for their next vehicle – up from 35% in January.
CEO John Veichmanis said: ‘Adding tariffs has the potential to inflate list prices or worsen finance rates.
‘The new car market currently has some positive momentum; no one will benefit from consumer uncertainty around pricing.
‘The UK’s shift to electric will still depend on affordable choice, and Chinese brands are part of that choice.
‘We hope the UK, the EU and China can find a compromise that protects British manufacturing, keeps choice and value for drivers and gives retailers long-term stability.’