Government looks at tariffs to counter risk of subsidised Chinese EVs

The UK government will use trade sanctions if the UK is threatened by a flood of cheap Chinese car imports.

Secretary of State for Transport, Rt Hon Mark Harper MP, attending the SMMT Connect conference yesterday, told delegates the UK had very robust measures in place for fair international trade.

Harper said: “We have very robust measures in this country, with a trade remedies regime which deals with not just the car industry but all markets, about making sure we have fair international trade, and that we don’t have dumping or unfair subsidy, the Telegraph reported.

“So, I think we have a good legal structure. That is the structure that will make sure that competition is fair and that there’s a level playing field.”

On 5 March, the European Commission issued a Regulation which found there was evidence of subsidies paid by the Chinese Government to domestic car manufacturers.

These subsidies would inevitably result in them having an advantage over other manufacturers in the European market.

The European Commission ordered that imports of Chinese-built cars into the EU should be recorded and an additional tariff over and above the 10% currently applied may be enforced. An interim decision will be published by early July, with a final decision following by November.

The outcome will be of interest to many as it will influence volumes, profits and pricing.

A number of Chinese car brands announced launches in the UK for the first time in 2023. This includes Nio, a potential Tesla rival, which had already launched in Norway, Germany, Holland, Denmark and Sweden.

BYD has also made a strong debut in the market, recruiting large dealer groups while GWK Ora is also building its UK network.