EU pushes UK to hike Chinese EV tariffs to avoid backdoor trade risks

The European Union has reportedly told London that Britain must raise its tariffs on Chinese electric vehicles and more closely align its trade policies if it wants to avoid "Made in Europe" export barriers.

Brussels has told British Prime Minister Andy Burnham that Britain needs to raise tariffs on Chinese cars and align more closely align with EU trade policy to avoid “made in Europe” barriers on key exports, the Financial Times said on Friday.

In response to lobbying for equal treatment for British products, the bloc told London its best solution would be to join the EU’s customs union

Brussels is concerned that if the UK maintains lower trade barriers on Chinese cars than the EU (which levies duties of up to 45% on Chinese EVs), Britain could become a "backdoor" entry point for cheap vehicles to flood the single market.

The "Made in Europe" Striction:

Prime Minister's push to ensure British goods receive equal treatment under the bloc's incoming industrial protection framework was met with a stark condition to align trade policy or risk hitting vital UK supply chains and exports.

According to Financial Times sources, EU officials suggested that the most comprehensive fix to avoid these trade friction points would be for Britain to rejoin the EU customs union.