Chinese electric car prices could rise as UK ministers prepare tariffs
Car changing is a big deal
Chinese electric cars have rapidly gained ground in Britain, but proposed import tariffs could change the market, pushing up prices while protecting UK and European carmakers.
Britain is considering tariffs on Chinese electric cars, potentially making some of the UK’s fastest-growing car brands more expensive for buyers.
According to The Times, business secretary Jonathan Reynolds is considering tariffs amid concerns that Chinese manufacturers benefit from state subsidies, allowing them to undercut carmakers based in Europe and the rest of the world.
The move would bring the UK closer to the European Union (EU), which introduced duties of up to 45% on Chinese electric cars in 2024.
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Why is the UK considering tariffs?
Nearly a quarter of cars sold in the UK in September were Chinese models, and the Jaecoo 7 was the best-selling car that month, with over 10,800 registrations, according to the latest figures from industry body the Society of Motor Manufacturers and Traders (SMMT).
So far, the UK has avoided implementing the additional tariffs imposed by the US and EU. But ministers are under pressure from the EU to change course, The Times reported.
Politicians in Brussels are concerned that Britain could become a gateway for Chinese cars into the European market. In return for aligning more closely with EU rules, the UK is seeking favourable treatment under proposed “Made in Europe” rules.
The rules are designed to favour European-made and lower-carbon products in some public spending and support schemes, helping protect European manufacturers from heavily subsidised imports.
That matters to the UK because the EU accounted for around 58% of British car exports in the first half of the year.
What could tariffs mean for car buyers?
The most obvious impact could be higher prices.
Manufacturers could pass some or all of the cost of a tariff on to customers through higher list prices, smaller discounts or less competitive finance deals.
That does not necessarily mean every Chinese EV will suddenly cost thousands more. It will depend on the size of the tariff and how much of the extra cost manufacturers pass on to buyers.
Chinese brands have gained customers partly by offering lots of equipment at competitive prices. Tariffs could narrow that advantage.
Should you buy a Chinese electric car now?
No tariff has been introduced yet, so there’s no immediate change for buyers.
Chinese brands are also unlikely to disappear from British showrooms. BYD, Jaecoo, MG and others have established a significant presence in the UK, and competition could limit how much of any tariff is passed on to customers.
If you’re considering a Chinese electric car, the main thing to watch is the overall cost, including the list price, discounts and finance deals. It’s also worth checking whether the car you’re interested in has a long waiting list or whether a tariff could affect future prices before committing to an order.
Carwow has approached the Department for Business and Trade for comment.
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