8:11 am, October 5, 2026
The UK government is preparing plans which could see tariffs imposed on Chinese electric cars, potentially pushing up showroom prices, amid mounting pressure to protect domestic vehicle manufacturing.
Business secretary Jonathan Reynolds is drawing up options for import duties over concerns that state-subsidised Chinese cars are being ‘dumped’ into the British market, The Times reports.
Britain has so far resisted following the European Union and United States in putting additional barriers on Chinese-built EVs.
However, The Times says the government’s position is shifting as Chinese brands take a growing share of the UK new car market and negotiations continue over British manufacturers’ access to the EU.
The newspaper reports that Brussels wants Britain to introduce tariffs amid fears the UK could otherwise become a route for Chinese manufacturers to circumvent European trade restrictions.
The issue has become linked to negotiations over the EU’s proposed ‘Made in Europe’ measures, which could restrict subsidies, tax incentives and public procurement benefits to vehicles manufactured within the bloc.
According to The Times, the EU has indicated that Britain could be excluded from the scheme unless it takes action on Chinese vehicle imports.
Such an outcome could have major implications for UK carmakers given the importance of European markets to British factories.
The EU accounted for 58% of UK car exports during the first half of 2026, compared with around 4% going to China, figures from the Society of Motor Manufacturers and Traders (SMMT) show.
Chinese brands make rapid UK gains
The potential change in policy comes as Chinese manufacturers continue to make significant inroads into Britain’s new car market.
Almost a quarter of cars sold in the UK during September came from Chinese brands, preliminary SMMT figures showed on Friday (Oct 2).
Five Chinese manufacturers are now among Britain’s 25 largest car brands, while the Jaecoo 7 alone recorded almost 11,000 registrations during the month.
The EU introduced additional duties on Chinese-built battery electric vehicles in 2024 following an investigation into state subsidies, with tariffs reaching as high as 45% when existing import duties are included.
The US has taken an even tougher approach to Chinese vehicle imports, butthe UK has so far chosen not to introduce equivalent measures.
The Times reports that ministers had previously been concerned about the potential for Chinese retaliation against British manufacturers, particularly Jaguar Land Rover.
However, government sources told the newspaper that the ‘balance has shifted’ as ministers weigh those risks against the potential impact of being excluded from the EU’s Made in Europe arrangements.
JLR’s exposure to China has also reduced significantly in recent years.
The manufacturer sold 62,400 cars in China during its last financial year, according to figures reported by The Times, compared with a peak of 146,000 in 2017.
Nissan calls for change to UK tariff policy
UK-based manufacturers which rely more heavily on exports to Europe have been pushing ministers to take action.
Nissan European chairman Massimiliano Messina warned last month that Britain risked becoming a ‘corridor’ through which Chinese EVs could enter the European market.
He said: ‘The whole UK has to adjust some of [the country’s] tariff policy.’
The SMMT has separately warned about the potential consequences of British-built cars being excluded from Made in Europe.
SMMT chief executive Mike Hawes said: ‘The UK and EU automotive industries are deeply integrated, so effectively excluding British-produced vehicles from their largest market would assure mutual damage.’
No final decision has been announced by ministers, with a government spokesperson telling The Times: ‘We have not put tariffs on Chinese EVs.
‘We continue to engage closely with industry so that our approach reflects the sector’s and UK’s national interests.’