No 10 leaves door open to Chinese EV tariffs as price of joining EU's 'Made in Europe' scheme

Downing Street has refused to rule out aligning with EU tariffs on Chinese electric vehicles after France dropped its opposition to the UK joining the Industrial Accelerator Act. Trade Minister Anas Sarwar told the German-British Business Summit the UK must "work together and act in lockstep" with the EU, a shift in tone from Business Secretary Jonathan Reynolds, who said earlier this week Britain would not be "coerced" into matching Brussels. Beijing has warned London it is "firmly opposed" to any tariff hike, calling such measures discriminatory and contrary to WTO rules.

A Franco-German draft proposal would require Britain to dynamically align with EU trade defence measures, including tariffs on Chinese EVs of up to 45 per cent, against the UK's current 10 per cent.

The UK fears exclusion from EU supply chains could cost the car industry billions, with Chinese brands already capturing over 10 per cent of the UK market this year.

Aligning with EU tariffs risks undermining the UK's EV targets by pushing up prices for consumers, with the Jaecoo 7 already Britain's best-selling car in September.