China warns of retaliation if UK follows EU tariffs on Chinese electric cars

China's Ministry of Commerce said on Monday, October 19, that it would take countermeasures if Britain introduced tariffs or restrictions on Chinese-made electric vehicles in line with the European Union. At a press briefing, a ministry spokesperson urged London to comply with World Trade Organization rules and to think carefully before acting. The UK has not yet announced a formal tariff decision.

Background to the warning

The statement followed comments by UK Trade Secretary Anas Sarwar to Politico. Speaking on the sidelines of the German-British Business Summit, Sarwar said it would be better for both sides if the UK and the EU acted together. He confirmed that talks with European partners on tariffs for Chinese-made electric cars were ongoing.

A joint automotive approach announced by France and Germany on October 16 could allow the UK to be treated as a trusted partner under the EU's Made in Europe rules. The condition is that London follows Brussels on trade protection measures against Chinese competition. Citing Xinhua, the Chinese spokesperson urged Britain not to fall into what it called the EU's trap and said Beijing would closely watch developments.

EU duties and Britain's current position

The EU imposed five-year countervailing duties on battery electric vehicles imported from China in October 2024. The rates are 7.8 percent for Tesla, 17 percent for BYD and 35.3 percent for SAIC, and they are added to the standard 10 percent import duty. For some brands, the total burden reaches 45.3 percent.

Britain did not follow the EU in 2024. Chinese-made cars currently face only the standard 10 percent import duty in the UK. According to Reuters, Brussels fears that Britain could become a back door for Chinese-made vehicles. British officials, for their part, are wary of a possible Chinese retaliation against Jaguar Land Rover. Some reports say about 80 percent of cars built in the UK are exported, with more than half going to the EU and around 6 percent to China. A UK-EU summit is scheduled for November 20.

Chinese brands' share in Britain

According to SMMT data, five of the 10 best-selling battery electric models in Britain in the first nine months of 2026 were of Chinese origin. The Tesla Model 3 and Model Y ranked first and second, followed by the BYD Sealion 7 and BYD Seal, while the Leapmotor B10 was 10th. Chery's Jaecoo 7 was the country's best-selling car in September, with 10,813 registrations. BYD's market share reached 5.75 percent in September.

Under a memorandum of understanding with Nissan, Chery plans to assemble vehicles at Nissan's Sunderland plant using completely knocked-down kits from China. According to an analysis by Automotive World, a straight application of the EU tariff would not cover hybrid models. Chery's Super Hybrid technology accounts for about three quarters of its UK sales.