EU calls on Great Britain to raise tariffs on Chinese cars

The European Union and the United Kingdom are discussing tariffs on Chinese cars and the possibility of including London in future “Made in Europe” rules, as Brussels seeks to reduce dependence on components manufactured in China and support European production.

According to the Financial Times, European officials are considering bringing the UK’s trade policy closer to that of the EU. One option would be for London to join a customs union with the bloc, a measure that could resolve some of the issues surrounding the application of the new rules of origin.

Brussels fears that differences between EU and UK tariffs could allow Chinese products to enter the European market through the UK, avoiding the duties imposed by the Union. At the same time, London is calling for British products to receive treatment similar to that afforded to goods manufactured in the EU.

The dispute has major implications for the automotive industry. The new European rules are expected to favor components produced in the Union in sectors such as automobiles, energy, and clean technologies. British industry warns that its exclusion would affect supply chains that are closely integrated with those in Europe. British Prime Minister Andy Burnham argued that the UK should be considered a “trusted partner”. The European Commission and British authorities did not immediately comment on the reports.