The move comes ahead of a planned UK-EU summit in November, where Burnham hopes to improve Britain’s relationship with Brussels. The discussions involve access to European industrial support schemes, alongside concerns about competition from Chinese car manufacturers.
EU Trade Discussions Put Chinese Electric Car Tariffs Under Scrutiny
According to the Birmingham Mail, Burnham is preparing to align Britain’s tariffs on Chinese electric vehicles with those imposed by the European Union. The proposal forms part of efforts to secure closer cooperation with European partners.
The Prime Minister is due to meet German Chancellor Friedrich Merz in Berlin on Thursday. During the visit, Burnham is expected to seek German support for allowing British companies to benefit from EU defence loans and industrial subsidies. Merz is expected to make clear that such access may depend on Britain increasing its tariffs on Chinese electric cars from the current 10% to the EU’s 45%.
An EU diplomat told The Telegraph that countries seeking recognition as European industrial partners could not maintain lower tariffs than those applied within the bloc. The diplomat argued that differing tariff rates could allow Chinese manufacturers to send vehicles through Britain and potentially benefit from European trade arrangements.
The discussions coincide with Burnham’s wider consideration of Britain’s post-Brexit relationship with the EU. Speaking to the BBC last week, Burnham outlined several possibilities, including maintaining existing arrangements, pursuing a customs union, returning to the single market or seeking full EU membership. He said ministers would examine “what is doable” alongside the advantages and disadvantages of each option.
Higher Tariffs Could Affect Electric Car Prices and Consumer Choice
A rise in tariffs to 45% has raised concerns about the affordability of Chinese electric vehicles in Britain, particularly among drivers looking for lower-priced models. Chinese manufacturers have expanded their presence in the British market through competitive pricing, technology and frequent new model launches. Higher import duties could change the conditions under which those companies compete.
According to Professor David Bailey of the University of Birmingham, increased tariffs would not necessarily end the growth of Chinese car brands in Britain, although they could slow their progress.
Bailey said manufacturers might respond differently depending on whether they prioritised maintaining competitive prices or protecting their profit margins. If companies passed the additional costs on to buyers, Chinese electric vehicles would become more expensive, reducing their price advantage over European alternatives.
Alternatively, manufacturers could absorb much of the increase to preserve their market share, limiting the immediate impact on consumers. The government has maintained that British trade measures are determined independently, based on domestic economic and industrial interests.
A government spokesman said Britain and Europe faced many of the same challenges and wanted to protect trade flows while exploring deeper cooperation. The spokesman also emphasised the aim of strengthening economic growth and addressing unfair trading practices without damaging existing commercial relationships.
