France drops opposition to UK joining EU's 'Made in Europe' car scheme if Britain aligns on China tariffs

France has reversed its opposition to the UK being included in the EU's Industrial Accelerator Act, in a breakthrough for Prime Minister Andy Burnham's trade strategy. A joint Franco-German paper proposes that Britain could qualify as 'Made in Europe' for the automotive sector, provided it adopts the EU's tariff regime on Chinese electric vehicles. The UK's trade minister has called for Britain and the EU to 'work together and act in lockstep' to counter China's dominance in the car industry. Norway, also outside the EU but inside the single market, would be eligible under the same opt-in arrangement.

The legislation, still in draft, is designed to shield domestic manufacturers from cheap Chinese competition, with the EU having imposed EV tariffs in 2024.