Chinese car tariffs will not go ahead, UK Government confirms
Tariffs which would have increased the price of some Chinese-made electric cars have been shelved...
Britain will not follow the European Union in imposing tariffs on Chinese-made electric cars sold in this country.
The move risked increasing the price of electric cars from some brands by as much as 35% – potentially stalling sales of such models at a time when their uptake is being encouraged.
British trade Minister Jonathan Reynolds confirmed the move earlier this week, noting that there had been no complaints from UK businesses to Britain’s Trade Remedies Authority. Reynolds noted his “primary concern” was to ensure export markets for British-made goods remained open.
Despite the move not going ahead in Britain, the European Commission has narrowly voted to allow the tariffs in Europe, countering what the group sees as unfair subsidies given to Chinese car makers by its Government. China has denied unfair competition.
Each Chinese car maker will be given a different tariff based on how much Government support the European Commission judges they receive, with BYD allocated 17%, Geely 18.8% and the SAIC group, which includes the Maxus and MG brands, 35.3%.
If the tariff had gone ahead in the UK, the price of the BYD Dolphin small electric car could have risen from £26,195 to £31,107, while prices for the MG4 could have risen from £26,995 to £36,534. Of course, it is unclear whether car makers would have passed the full cost of the tariff on to consumers. The new tariff would have been on top of the existing 10% tariff placed on foreign goods sold in Britain.
So far in 2024, registrations of electric cars have accounted for 17.8% of the UKs market total, but most of those have come from businesses and company car fleets rather than private buyers.
The Zero-Emission Vehicle (ZEV) Mandate dictates that electric cars must make up at least 22% of each car makers’ sales in 2024, with fines of up to £15,000 per car that miss the target.
The percentage of electric car sales manufacturers must have rises proportionally each year until 2035, when a ban on the sale of new cars powered solely by petrol or diesel will come into force. Should the new Labour Government follow through on its manifesto pledge, that date could be pulled forward to 2030.
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