The United Kingdom is considering tariffs on electric cars imported from China amid concerns about unfair competition

The UK is considering imposing tariffs on electric vehicles imported from China amid concerns that Chinese manufacturers, supported by subsidies, are selling their cars in the United Kingdom below production cost. The information was published by The Times on Sunday.

British Trade Minister Jonathan Reynolds is working on tariff options, according to the publication. The measure could reach a level similar to the tariffs of up to 45% imposed by the European Union on certain Chinese electric vehicles.

The London government said, however, that no tariffs have currently been introduced on electric vehicle imports from China. A spokesperson said the authorities are working with the industry to ensure that trade policy takes national interests and the competitiveness of the automotive sector into account.

The discussions are taking place amid Brussels’ plans to introduce “Made in Europe” rules, including limits on the local content of electric vehicles sold in the European Union. The rules could enter into force as early as next year and would affect British manufacturers exporting to the EU market.

London is seeking “trusted partner” status under these regulations in order to avoid new trade barriers. The European Commission has reportedly asked the UK to raise its tariffs on Chinese cars and better align its trade policy with that of the EU.