UK May Follow European Union, US With China EV Tariffs

Back in May, the Biden Administration increased tariffs on a number of items coming from China, including steel, aluminum, semiconductor chips, Chinese EVs, and a variety of raw materials used to make EV batteries. This move aims to prevent electric vehicle manufacturers based in that country from impacting American companies to the point where it becomes detrimental to their business as a whole and address potential national security concerns, and since then, other parts of the world have followed suit.

Along with the European Union and Canada, it seems as if the United Kingdom is now also weighing tariffs targeted at Chinese EVs, according to Bloomberg. Business Secretary Jonathan Reynolds is reportedly speaking with the UK’s automotive industry regarding this possibility right now, noting that after an investigation, the government found that EV automakers in China are receiving what it calls “unfair subsidies” as they move into the European market and other parts of the world.

While the U.S. has already raised tariffs on a variety of Chinese imports, the European Union is also weighing a similar action, as it recently decided to raise tariffs on imported Chinese EVs by anywhere from 17.4 percent to 37.6 percent, though there is one major caveat – there is a four-month provision built into this legislation. This is because the EU will continue its talks with China and continue to try and find another resolution, as that country has also threatened to increase tariffs on a variety of European imports in a retaliatory measure.

The U.S. and EU were recently joined by Canada as well, which just announced that it is launching a 30-day consultation on potential policy responses to protect its automotive industry from unfair trade policies and practices, as well as prevent trade diversion. Canada notes that if it doesn’t take action against Chinese EVs, it could lead to “an exponential surge of imports that will adversely affect planned EV investments and the transformation of Canada’s automotive sector.”

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