UK car industry warned it must choose between China and EU or risk thousands of job losses

From the Newshound archive · first published 4 October 2026 · last updated 5 October 2026.

Britain's automotive sector faces a stark "difficult trade-off" as EU officials reportedly warned Prime Minister Andy Burnham last month that the UK must impose tariffs on cheap Chinese vehicles or face being locked out of European markets under Brussels' new "Made in Europe" rules. Business Secretary Jonathan Reynolds has resisted tariff calls, arguing levies would cost UK manufacturers sales in China. The EU already charges up to 45% on Chinese vehicles while the US has shut them out almost entirely, leaving Britain increasingly exposed as an outlier.

The SMMT is calling on the Government to negotiate urgently with the EU to protect thousands of jobs across the industry.

Nissan, McLaren and Bentley have all committed fresh investment to UK operations, but that could be jeopardised if Britain is excluded from the EU's Industrial Accelerator Act.