A reported tariff condition could make Britain's approach to Chinese electric vehicles central to talks on European Union (EU) industrial support, while Downing Street says UK participation would benefit the automotive industry.
A Downing Street spokeswoman said the government welcomed the objective of including the UK in the Industrial Accelerator Act. She described potential inclusion as “good news” for the UK automotive industry and said it would support jobs and investment across the country. She declined to discuss terms, saying the European process was still underway.
The Independent reported Friday that France and Germany had proposed extending the scheme to the UK automotive industry. The report described a proposal, not an agreed arrangement. Citing The Guardian, the paper said the plan would require Britain to adopt the EU's duties on electric vehicles manufactured in China.
The Independent described “Made in Europe” as a plan to help clean-technology companies and electric-vehicle manufacturers compete with lower-priced Chinese rivals. The reported tariff condition would tie access to the plan to Britain's trade-policy choices, as the country has so far resisted imposing similar duties.
The EU has imposed tariffs on Chinese electric vehicles. The Independent said similar UK duties could make electric vehicles more expensive for consumers and threaten the country's EV targets.
Earlier this week, the prime minister raised concerns about possible effects on British manufacturing and said he would discuss the measure’s impact on UK automotive firms with the EU. Trade Secretary Jonathan Reynolds said tariff decisions would be “based on the UK interest.”
Downing Street said Britain sets its trade policy separately and reviews tariffs. The spokeswoman said officials consult with the UK automotive sector to ensure policy reflects its interests. When asked whether Britain would match EU duties, she said it was too early to discuss the terms of any deal.
