UK won't follow Europe in imposing tariffs for Chinese electric cars – report

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Following the EU’s (European Union) vote to increase tariffs on Chinese-built electric cars earlier this month, a key figure within the UK government said the country has no plans to follow suit.

According to a report by AutoNews, Jonathan Reynolds, the UK Trade Minister, said there have been no complaints raised by local manufacturers that would warrant the Federal Government to introduce similar taxes on Chinese EVs.

"I do have the power as the Secretary of State to make that referral… we keep it under close analysis, but I think it's important our [automotive] industry is different, and as of yet industry itself has not asked for that referral to the TRA [Trade Remedies Authority]," Reynolds said in a media statement.

In addition, Reynolds said his "primary concern" is to ensure a thriving trade and export economy for local British producers.

In October 2024, member countries of the European Commission – the executive branch of the European Union – voted in favour of increasing tariffs on Chinese EVs, which will increase levies on battery-powered cars built in China by up to 45 per cent within five years.

It is worth noting not all countries voted in favour, with five countries – including Germany and Hungary – voting against it and a further 12 nations abstaining from voting altogether.

On a local level, Shaun Westcott, the Chief Executive Officer of Mitsubishi Motors Australia, said, "The market is going to become very crowded in the next few years with a lot of proliferation of products."

"There are some countries that are alert to it and have started looking at import barriers and tariffs because there is some dumping that is going to happen,” he added.

While the US and Europe have imposed increased levies on Chinese-built EVs, Australia doesn't currently have any taxes set in place as the Federal Government previously signed a Free Trade Agreement (FTA) with China in 2015.

Despite Westcott’s concerns that a lot of EVs "will be dumped here in Australia", the influx of more affordable battery-powered vehicles has led to various car makers discounting their prices to compete, meaning consumers have more options than ever before.

"We're seeing some companies decrease prices, really sweeping discounts – some might call it a price war.  It's the likes of Tesla, BYD and others, [have] significant price reductions. If I'm a consumer I might be waiting for another one," John Koury, Industry Policy Adviser at the Victorian Automotive Chamber of Commerce (VACC), said recently.

However, various car makers like Mitsubishi and Chery previously said it won’t be pulled into a price war to compete with other incoming manufacturers.

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