Jonathan Reynolds is drawing up tariffs on Chinese electric cars to keep Britain inside the EU's 'Made in Europe' scheme

From the Newshound archive · first published 5 October 2026 · last updated 6 October 2026.

Business secretary Jonathan Reynolds has authorised officials to draw up a package of potential levies on Chinese electric vehicles, amid warnings that Brussels could cut Britain out of its new "Made in Europe" manufacturing scheme if it refuses to act. The EU is pressing the UK to match its own 45 per cent tariff on Chinese cars or risk being treated as a back door for state-subsidised vehicles. More than 300,000 Chinese cars have been sold in the UK so far this year, a fresh record, with Chinese brands now accounting for nearly a quarter of the market by volume.

Ministers fear Chinese carmakers are "dumping" subsidised vehicles into the UK, undermining European rivals and threatening British car industry access to EU supply chains.