UK and EU to ‘work together and act in lockstep’ amid Chinese tariff debate, minister says

Speaking to Politico, the former Leader of the Scottish Labour Party said the Government remained in conversation with European partners on the prospect of tariffs on Chinese cars.

Chinese cars have seen massive success over the last three years in the UK as drivers look to get their hands on cheaper vehicles with impressive technology.

The likes of BYD, Chery, Jaecoo and Omoda have taken the UK by storm, capturing more than 10 per cent of the market share so far this year.

In September, the Jaecoo 7 was the best-selling vehicle in the UK, with almost 11,000 new registrations, while three of the 10 most popular electric cars were Chinese.

However, experts have warned that the influx of Chinese cars could have a significant impact on legacy manufacturers, especially those across Europe.

Some of the largest manufacturers in the world have announced major job losses and model cuts due to strong competition from Chinese competitors.

Recent reports have suggested that European manufacturing giants, including Germany, have pushed the UK to adopt levies of up to 45 per cent.

If the UK were to follow suit, it could gain access to the EU’s “Made in Europe” scheme under the Industrial Accelerator Act.

Any electric vehicle would qualify for Made in Europe subsidies if at least 70 per cent of the vehicle and its parts are produced in the bloc.

The UK has not yet been given “trusted partner” status, although this could change if Labour agrees to impose tariffs on Chinese automakers and aligns more closely with the EU.

Lord Sarwar told Politico: “The automotive sector and partnership remain strong, but do we have to grapple with the challenge that comes from rapid expansion in China? Of course we do.

“The more that the UK and the EU work together and act in lockstep, the better it is for both the UK and the European Union.”

Speaking previously, Business Secretary Jonathan Reynolds explained that the UK was an “export-orientated sector”.

He added that the decision to impose tariffs would be considered in a different way to the UK, given varying market conditions.

A Government spokesperson told GB News that the UK wanted to “explore deeper cooperation” with the EU to unlock growth opportunities.

Despite this, it acknowledged the need to avoid collateral damage when tackling unfair trading practices worldwide.

They added: “We always put trade measures in place independently and based only on the UK’s economic interests and those of industry.

“However, Europe and the UK face many of the same challenges, which is why it is vital we protect trade flows between us.”