France drops opposition to UK's 'Made in Europe' car status but demands London match EU tariffs on Chinese EVs

France has reversed its opposition to including the UK in the EU's draft Industrial Accelerator Act, which shields European car manufacturing from cheap Chinese competition, but demands Britain fully align with Brussels on tariffs against Chinese electric vehicles. The breakthrough followed a joint Franco-German paper backing a UK opt-in for any European partner that was inside the single market on 1 January 2020 — a condition the UK and Norway both meet. Trade minister Anas Sarwar said Britain and the EU must 'work together and act in lockstep' to counter China's dominance in the automotive sector.

Business secretary Jonathan Reynolds had said earlier this week the government would not be coerced into matching EU tariff policy — now London faces pressure to do exactly that.

The Franco-German deal itself hit a snag Thursday evening when Germany's Social Democrats blocked it over fears it weakened key environmental targets, including the 2035 combustion engine ban.

Exclusion from EU supply chains under the 'Made in Europe' rules could cost Britain's car industry billions of pounds, according to warnings from UK officials pressing for the opt-in.