Downing Street welcomes Franco-German plan to include UK in 'Made in Europe' car scheme but tariff price tag looms

France has dropped its opposition to the UK joining the EU's Industrial Accelerator Act, with Downing Street calling potential inclusion "good news" for British automotive jobs and investment. A joint Franco-German paper reportedly proposes the UK and Norway opt into the scheme, but only if Britain aligns with the EU's tariffs on Chinese electric vehicles — levies of up to 45 per cent that ministers have previously resisted. Trade Minister Anas Sarwar told a German-British business summit the UK and EU must "work together and act in lockstep" on Chinese car imports.

Germany's Social Democrats stalled the full Franco-German deal on Thursday over fears it weakened key environmental targets.

Business Secretary Jonathan Reynolds had insisted earlier this week that tariff decisions would be "based on the UK interest" and Britain would not be coerced.

Aligning with EU tariffs risks making electric vehicles more expensive for British consumers, potentially undermining the government's own EV uptake targets.