7:43 am, March 21, 2025
Two of the UK’s most powerful car manufacturer bosses have spoken out against the prospect of introducing tariffs on Chinese vehicles.
At present, the UK does not impose any tariffs on cars imported from China, leading to the enormous growth of the likes of BYD, GWM and Jaecoo over recent years.
However, there are fears about what the influx could mean for the British carmaking industry, which is struggling to keep up with its state-backed Chinese rivals.
In the US, Chinese imports are currently subject to enormous tariffs of over 100%, while the EU imposes charges of up to 35%.
The latter has proved incredibly controversial, with China lodging an official complaint with the World Trade Organisation over the issue last year.
Officials in Beijing say that such charges are ‘an abuse of trade remedies’ but there remain growing calls for similar tariffs to be introduced in the UK.
On a recent episode of the Car Dealer Podcast, Motorway boss James Wilson spoke up in favour of the measures but they seem to be less popular with the manufacturers themselves.
Appearing at Car Dealer Live last week, Stellantis’s UK chief, Eurig Druce, called for free trade to remain in place and backed the company to win any competition with the Chinese brands.
Any tariffs would likely impact Leapmotor, which Stellantis recently invested over £1bn into in order to sell its cars in Europe.
Asked by host James Batchelor, whether tariffs were inevitable, Druce replied: ‘I don’t think so and I hope not.’
He added: ‘Stellantis is a company that operates globally and tariffs block global trade. I would much prefer – and we as a company would much prefer – to be in a scenario where we have free trade.
‘I think tariffs are in place where you are not confident in your own ability to compete. I’ve said before, in various interviews, that I would welcome a competition with anybody in terms of the motoring industry.
‘We have products that we can be proud of, we have products that we are confident in. I don’t need taxation tariffs to be the way forward.
‘It will create a lazy industry and it won’t create the competitive nature that we need.’
Druce appeared on stage at the British Motor Museum alongside Adam Wood, the managing director of Renault in the UK.
He also spoke out against additional tariffs and instead called for measures to accelerate demand for EVs and hybrids.
He said: ‘We don’t need barriers to free trade. I think we’ve invested billions as manufacturers into industry-leading technology, across full EV but also hybrid.
‘What we need now are measures that are going to accelerate demand for those vehicles that we are making and a market which is confident.
‘I’d certainly welcome all measures that are going to increase that consumer confidence, particularly in the retail sector.
‘We know that retail sales in the UK have been about 20% of the EV market. If we are to meet those ambitious targets of getting to 80% by 2030, what we need is confidence and clear signals of confidence.
‘Certainly we’d welcome incentives to stimulate that private demand. That’s what we need. With government, industry and the charging infrastructure as well, if we all play as one team, remove barriers to EV adoption then we can start to meet those ambitious targets.’
You can read all the headlines from Car Dealer Live here.
