Concerns are mounting among economic analysts regarding the potential repercussions for the UK economy should import taxes, known as tariffs, be placed on goods from China. The primary worries center around increased costs for drivers and a potentially damaging effect on British car manufacturing.
Over the past year, several nations have taken action against Chinese electric vehicles (EVs). Both the European Union and the United States, alongside Canada, have implemented tariffs aimed at safeguarding their domestic automotive industries and curbing China’s influence in the global EV market.
The UK has so far maintained a cautious approach, choosing not to impose similar levies despite these actions by key international partners. According to data from the Society of Motor Manufacturers and Traders (SMMT), China ranks as the UK’s third-largest export partner, accounting for 6.6% of total exports.
This places China behind only the European Union (54%) and the United States (16.9%), but ahead of countries like Turkey, Japan, Australia, Canada, and South Korea.
William Fletcher MBE, Chief Executive of car.co.uk, highlighted the US’s proactive stance in implementing tariffs on Chinese imports under the Biden administration. He explained, “These measures render it economically unviable for Chinese automakers to compete effectively within the US market. This creates an opportunity, and the UK could be a particularly attractive destination.”
Fletcher further elaborated on the current situation:
- The EU has introduced provisional tariffs of up to 45% on Chinese EVs, in addition to a standard 10% duty.
- The UK, however, hasn’t yet implemented comparable measures as of early 2025.
- Post-Brexit, the UK is forging its own trade policies and has been hesitant to mirror tariff strategies adopted by the EU or US, partly due to a desire to avoid straining relations with China and partly to facilitate the transition to affordable electric vehicles.
Fletcher anticipates that maintaining an open market could draw significant interest from Chinese manufacturers eager to enter the UK market, particularly as existing import tariffs on cars in the UK are comparatively low at around 10% and aren’t specifically targeted at China.
Several Chinese automotive brands have already established a foothold within the UK. Recent sales data from the SMMT demonstrates this trend:
- BYD: Over 9,000 vehicles sold year-to-date.
- Jaecoo: 3,235 vehicles sold.
- Leapmotor: 193 vehicles sold.
- Omoda: 3,194 vehicles sold.
- Xpeng: 36 vehicles sold.
Other brands are also preparing their entry into the UK market. Examples include Deepal with its S07 electric SUV (expected to retail for under £40,000) and Farizon’s electric van boasting a range of approximately 250 miles.
Fletcher cautioned that imposing tariffs could negatively impact British manufacturers already facing considerable pressures. He warned, “Tariff-driven supply chain limitations have the potential to increase repair costs by as much as 20%, disproportionately affecting owners of older vehicles.”
Furthermore, he added that economists predict global trade tensions could reduce UK GDP by between 0.1% and 0.2% in 2025, potentially fueling inflationary pressures on household finances.
A Government spokesperson assured GB News that the introduction of tariffs against any country is currently under consideration, emphasizing a commitment to analyzing market conditions. “We are always attentive to international developments and remain clear that any decision regarding tariff implementation must be in the best interests of our domestic automotive industry.”
