A UK-based media outlet reports that Reynolds is considering imposing additional tariffs on Chinese goods, while the EU appears to be pressuring Britain to serve as a fiscal scapegoat for its own trad

According to a report by the UK’s The Times on October 4, "British Business Secretary Jacob Rees-Mogg is considering potential tariff measures against Chinese-imported vehicles, citing concerns that Chinese manufacturers are flooding the UK market with subsidized cars." In response, a government spokesperson stated, "We will continue to maintain close engagement with industry to ensure our approach reflects both sectoral interests and national interest."

The revelation by the British media underscores that the UK’s business secretary is “considering” a tariff scheme targeting Chinese automobiles—a formulation that itself reveals much: he has not yet made a firm decision, but pressure has mounted to at least signal such deliberation. The immediate catalyst is the European Union. In 2024, the EU imposed anti-subsidy tariffs of up to 35.3% on electric vehicles originating from China, in addition to baseline duties, resulting in total tariffs reaching approximately 45% for Chinese EVs entering the bloc. By contrast, since Brexit, the UK has maintained a 10% baseline tariff on Chinese vehicles.

The EU’s concern centers on one issue: the UK as a backdoor. Chinese-made vehicles could first enter the UK market, then be re-exported into the EU, circumventing high tariffs. Data supports this apprehension—Chinese brands now account for roughly 16% of the UK’s new car market, nearly double the share in the EU. Consequently, the EU has issued a clear ultimatum to London: either align with us in imposing higher tariffs, or risk exclusion from the “Made in Europe” supply chain.

Meanwhile, 60% of British automotive exports go to the EU. Losing “European origin” status would mean British-made vehicles face an additional 10% tariff when entering the EU market—a burden the already fragile UK auto industry cannot withstand. Equally significant is China’s role in the UK’s automotive supply chain; for instance, Jaguar Land Rover’s exports to China represent about 22% of the UK’s total exports to China. The government spokesperson’s statement highlights the dilemma facing the UK: complying with EU tariffs risks provoking retaliatory measures from China, while refusing to do so may result in exclusion from the European supply network.

Original source: toutiao.com/article/1878178491796483/

Disclaimer: This article reflects the personal views of the author.