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UK trade secretary Jonathan Reynolds indicated that the UK will not follow the EU’s move to impose tough tariffs on Chinese electric vehicle imports, stating that he remains vigilant.
During a meeting of G7 trade ministers in Italy, Reynolds mentioned that he had conversations with European counterparts regarding the EU’s decision to impose tariffs on Chinese EVs as a response to perceived unfair state subsidies.
The new Labour minister expressed concerns but clarified that he currently has no plans to initiate a formal investigation into Chinese EV imports.
Reynolds stated, “I am not ruling anything out, but the decision made must be the right one for the sector, especially for a highly export-oriented industry.”
Insiders from the UK government highlighted that the British car sector has not formally requested the Trade Remedies Authority to launch an investigation into Chinese EV imports, a necessary step for the UK to proceed with a probe.
Despite affirming that steps will be taken to safeguard the UK car industry, Reynolds has not yet given the order to commence an investigation.
In 2023, the UK exported approximately 700,000 cars, with only 7% going to China and 60% to the EU27, indicating less vulnerability to retaliation compared to other countries like Germany.
However, the UK’s domestic EV market relies heavily on brands manufacturing cars in China, such as Tesla, BMW, and MG owned by China’s SAIC Motors.
Following an anti-subsidy investigation, Brussels announced an increase in tariffs on Chinese-made EVs by up to 38%, affecting Chinese brands exporting to Europe and western brands producing EVs in China.
Reynolds discussed these matters with EU trade commissioner Valdis Dombrovskis, emphasizing the importance of a strong working relationship between the UK and EU based on mutual interest.
Issues like WTO reform and global market overcapacity were also on the agenda during their meeting.