UK government weighs higher tariffs on Chinese cars as imports surge
The UK government is reviewing whether to raise tariffs on Chinese-made cars, currently 10%, as cheap imports take one in five sales and the EU presses Britain to match its higher duties.
The Full Story
A plain summary built from the channels that reported this story.
The UK government is considering higher tariffs on Chinese-made cars, with the current 10% import duty under close review. The move follows pressure from the European Union and concerns about British car manufacturing, but ministers face a difficult trade-off over cheaper vehicles, net zero transport and the risk of Chinese retaliation.
Chinese car imports have risen sharply. At the turn of the decade, imports were worth hundreds of millions of pounds. So far this year they are already worth £4.7bn and are heading towards £6bn to £7bn. Chinese cars made up just under a quarter of UK car registrations in September and about one in five so far this year. Earlier in the decade, the share was about 1%. Most are electric, but not all. The Jaecoo 7, a hybrid, was the fastest-selling car in the UK last month. Brands such as Jaecoo and Omoda have grown because of affordable prices, and dealers say buyers are now more confident about build quality.
Rising imports come as UK car manufacturing struggles. Nissan and Jaguar Land Rover have made job cuts. The government says tariffs are under close review. The UK's standard import duty is 10%. The US has imposed a 100% tariff on Chinese car imports. In the EU, duties can reach 45.5%, depending on the manufacturer. EU officials are keen for Britain to match its tariffs, but critics say the EU is acting to protect European car makers, not British interests.
The political dilemma is sharp. Cheap Chinese cars help households with the cost of living and support lower-carbon transport. But they also put pressure on domestic manufacturers and raise national security questions about reliance on Chinese technology for cars, buses and other transport that could potentially be switched off from Beijing. There are questions about Chinese investment too. A Chinese company behind the Jaecoo 7 has held talks about using an underused production line at Nissan's Sunderland plant, and low UK tariffs are part of the attraction. Spain has encouraged Chinese car factories, and a former business secretary encouraged similar assembly investment in the UK.
Experts warn that higher tariffs could push up prices for all mainstream family cars, not just Chinese models, and may not help UK manufacturing much. Supporters of free trade argue that tariffs punish efficiency and risk retaliation against UK exports such as luxury cars and Scotch whisky. The public's growing taste for cheap Chinese cars may shape where politics goes next.
On screen
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Key Claims
Claims reported during this story's coverage, grouped by how many channels reported each one. Select a dot to see the source excerpt.
| Claim |  |  |
|---|---|---|
| Reported by all 2 channels | ||
| Chinese-made cars currently face a 10% tariff. | ||
| Only on one channel | ||
| Chinese brands Jaecoo and Omoda are growing in the UK market because of relatively affordable prices. | Not reported by BBC Two | |
| Chinese car imports to the UK are worth £4.7bn so far this year and are projected to reach £6bn to £7bn. | Not reported by Channel 5 | |
| Chinese cars accounted for about one in five UK registrations so far this year, up from about 1% earlier in the decade. | Not reported by Channel 5 | |
| The UK government said tariffs on Chinese cars are under close review. | Not reported by BBC Two | |
Channel Perspectives
What each channel focused on, with key quotes.
The channel treated the story as a broad economic and political dilemma. Its economics editor set out the scale of the Chinese car export surge and tied tariffs to EU trade talks, domestic manufacturing, net zero and national security. The discussion also gave space to a free-trade argument against tariffs and noted that UK manufacturers have so far been quiet.
- “there's something of a kind of economic earthquake emanating from China in terms of manufacturing industry and, in particular, in terms of cars.”
- “on the one hand, these cars, and we were talking about climate change and net zero before, have helped deliver lower carbon transport. But on the other hand, there are concerns about what it would mean for UK domestic manufacturers.”
- “if people can get a car significantly cheaper by importing it from China, who are we then to say cost of living crisis is about us subsidising you wherever we can but not you finding a sort of cut price kind of bargain yourself?”
5 News reported from a car forecourt and focused on consumer demand for affordable Chinese brands. It contrasted their popularity with job cuts at Nissan and Jaguar Land Rover, set out international tariff levels and aired expert scepticism that higher tariffs would help UK manufacturing. It also framed EU pressure as self-interested.
- “this one, the Jaecoo 7, was the fastest selling car in the UK last month.”
- “If we suddenly whack big tariffs on those cars, it's going to push the price of all mainstream family cars up, not just the Chinese ones.”
- “The EU is very keen for Britain to match its tariffs on China, but let's be clear about that. That's because the EU sees an advantage in that.”
Broadcast Timeline
News broadcasts tracked for this story, in time order.