2024 EU Tariffs on Chinese EVs Loom Over UK's Trade Talks

Downing Street said Friday it would "welcome the objective" of bringing Britain into the European Union's Made in Europe industrial package, leaving open the possibility that the UK would have to impose tariffs on Chinese-made electric vehicles as a condition of entry, according to The Guardian. The statement followed France's decision to drop its opposition to British participation in the scheme, reported by the Guardian's Rowena Mason, Lisa O'Carroll and Jasper Jolly.

The Chinese embassy in London responded within hours, warning that tariff increases tied to the scheme would amount to "discriminatory practice."

What Would the UK Have to Accept to Join Made in Europe?

A Franco-German proposal circulated Thursday night would require the UK to "dynamically align" with the EU's trade defense measures, including the bloc's existing tariffs on Chinese-made EVs, which Brussels imposed in 2024, the Guardian reported. The Made in Europe package is designed to curb subsidized Chinese imports by giving EU-made products preferential treatment across the bloc's industrial supply chains.

Britain and other non-EU states, including Norway, have pushed to join the scheme because they fear being shut out of EU supply chains if they remain outside it. The UK government has told officials it is worried that billions of pounds in car-industry trade could be lost if Britain is locked out, according to the Guardian.

Why Does France's Position Matter?

France had previously opposed UK membership in the Industrial Accelerator Act, the legal vehicle for the Made in Europe scheme. Its reversal, confirmed in the Franco-German proposal this week, opened a path for British inclusion — but attached the tariff-alignment condition that Downing Street has not yet accepted or rejected outright.

How Has Beijing Responded?

The Chinese embassy in London said it had already raised the matter directly with British officials. "We have expressed serious concern to the UK side regarding the reports in question," the embassy said, adding that "trade protectionism runs counter to WTO rules and market principles," the Guardian reported.

"We are firmly opposed to any discriminatory practice involving tariff hikes or restrictive measures on Chinese products." — Chinese embassy in London, Oct. 16, 2026

What Has the UK Government Said?

Business Secretary Jonathan Reynolds said this week that Britain would not be "coerced" into aligning with the EU's tariff policy on Chinese EVs, according to the Guardian. That stance sits alongside the government's stated eagerness to join Made in Europe, a tension Downing Street has not resolved publicly.

Asked directly whether the UK accepts it would have to impose tariffs on Chinese vehicles to join the scheme, a No. 10 spokesperson called it "premature to speculate" on the terms of any eventual deal with the EU, noting "there was still a European process to run," per the Guardian's account. The spokesperson added that "the UK obviously has its own trade policy and it keeps all tariffs under review," and said the government "works closely with the British" auto industry on the question — the Guardian's report was cut off before further detail on that collaboration was quoted.

What Happens Next?

No timetable for a final UK decision on Made in Europe membership has been disclosed in the reporting. The Franco-German proposal requiring tariff alignment still needs to move through EU processes before any UK accession terms are finalized, and Downing Street has given no indication of when it expects clarity on whether Britain will accept the tariff condition, maintain its current position, or seek a modified arrangement.

The outcome will matter most directly to Britain's auto sector, which the government has said could lose significant trade if left outside the EU's preferential supply-chain framework. It will also test how far London is willing to go in aligning with Brussels' trade-defense posture toward Beijing at a moment when the Chinese embassy has already signaled it is watching the outcome closely and has raised objections through diplomatic channels.