The U.K. is facing a difficult choice on whether to impose tariffs on Chinese electric vehicles (EVs) to align with the EU, with Business Minister Jonathan Reynolds reportedly considering matching the bloc's levies. This comes as Chinese EVs currently face only a 10% import duty in Britain, significantly lower than the U.S.'s 100% and the EU's up to 35.3%.

An EU official previously stated that the U.K. would need to raise tariffs to avoid "Made in Europe" barriers, which could harm domestic companies selling into the EU. The Chinese Embassy in London has expressed "serious concern" over potential tariffs, warning of retaliatory measures.

Chinese car brands have rapidly gained market share in the U.K., reaching 28.1% by the end of August, up from 12.9% in the same period last year. Analysis suggests that tariffs solely targeting battery EVs may not address the growth of hybrid vehicles or underlying cost advantages.