Whether the United Kingdom will join the European Union’s (EU) additional tariffs and trade restrictions imposed in response to China’s rise in the electric vehicle sector is one of the key issues on Europe’s agenda. At the heart of the debate lie economic dependence on China, Europe’s efforts to protect its domestic market, and the UK’s position in the European market in the post-Brexit era.
The EU is seeking to establish a more coordinated trade policy with the United Kingdom in order to curb the competitiveness of Chinese manufacturers in Europe and protect its own industrial base. One of the issues under discussion in this process is whether the UK should be included in the “Made in Europe” programme. A joint proposal by France and Germany makes the UK’s eligibility for “Made in Europe” producer status in the automotive sector conditional upon its alignment with the EU’s trade defence measures, particularly those targeting China.[i] In this context, London is expected to align not only with tariffs on Chinese-made electric vehicles but also with the EU’s future trade measures and practices. In other words, in order to maintain its position in the European market, the United Kingdom may have to align its China-related trade policy with Brussels.
In a statement on 14 October 2026, UK Secretary of State for Business, Innovation, Science and Trade Jonathan Reynolds said that his country would safeguard its own commercial interests and would not impose additional tariffs directly on Chinese vehicles simply because of pressure from the EU.[ii] A day later, UK Trade Minister Anas Sarwar stated that the UK and the EU should work together to counter China’s growing influence in the automotive sector.[iii] These differing statements at ministerial level highlight the uncertainty surrounding how London intends to protect its national interests in shaping trade policy.
At this point, London faces a significant challenge that requires a solution or a middle ground: protecting British manufacturers’ share of the EU market while also benefiting from highly attractive Chinese investors in its domestic market. Indeed, while the EU market accounts for 58 per cent of the UK’s car exports, China’s share stands at approximately 4 per cent.[iv] These figures demonstrate the importance of access to the European market for the British automotive industry. Meanwhile, Chinese brands offer British consumers more affordable electric and hybrid vehicles, while their manufacturing investments create opportunities in terms of employment and industrial activity. Furthermore, the enormous £35 billion fiscal shortfall facing London ahead of the budget, coupled with the risk of high inflation, severely constrains the British government’s room for manoeuvre.[v]
Energy costs driven by both transatlantic divisions and other global geopolitical crises, alongside an increasing debt burden, make it difficult for the United Kingdom to take radical or costly decisions regarding its industrial policies. This economic vulnerability pushes London, on the one hand, towards developing trade policies aligned with the EU and, on the other, towards preserving its commercial relations with major markets such as China. The fundamental question, therefore, is which markets the UK will prioritise and what economic costs it will be willing to bear in doing so. Although the UK seeks to remain outside the EU politically and legally in the post-Brexit era, it may nevertheless have to realign itself with European trade policies to ensure the continuity of its industrial production.
The export-oriented structure of the British automotive industry, combined with the absence of a major Chinese manufacturer with a direct production presence in the country, makes it more difficult for London to coordinate its trade policy with the EU. Indeed, if the UK adopts a tariff policy aligned with that of the EU, British automotive manufacturers risk being harmed by retaliatory tariffs imposed by China. Nevertheless, UK Trade Minister Anas Sarwar’s statement that the UK should coordinate its China-related trade policies with the EU suggests that London is reconsidering its current position and leaving the door open to negotiations with Brussels.
In conclusion, trade wars between the West and China are pushing the United Kingdom towards a new strategic dilemma in the post-Brexit era. On the one hand, London seeks to pursue an independent trade policy, preserve its relations with China and avoid additional tariffs. On the other hand, it must align itself with the EU’s rules and trade policies to avoid exclusion from its largest market. Caught between protectionism in the United States (US) and the EU and China’s rapid commercial expansion, medium-sized economies such as the United Kingdom must find a new way forward or strike a new balance to protect their national interests. Although aligning with the EU’s China trade policies may appear to be a concession from London’s perspective, it could prove to be an acceptable way forward to safeguard the British automotive industry’s access to the EU market and preserve integrated production chains.
[i] “France drops opposition to UK being included in ‘Made in Europe’ legislation”, The Guardian, https://www.theguardian.com/world/2026/oct/15/france-drops-opposition-to-uk-being-included-in-made-in-europe-legislation, (Date Accessed: 16.10.2026).
[ii] Ibid.
[iii] “UK must work with EU to counter China’s EV dominance”, Breaking The News, https://breakingthenews.net/Article/UK-must-work-with-EU-to-counter-China’s-EV-dominance/67319372, (Date Accessed: 16.10.2026).
[iv] “UK car industry faces ‘difficult trade-off’ between Chinese and EU markets”, The Guardian, https://www.theguardian.com/business/2026/oct/04/uk-car-industry-trade-off-china-made-in-europe-laws, (Date Accessed: 16.10.2026).
[v] “UK facing tax hikes or spending cuts”, China Daily, https://www.chinadaily.com.cn/a/202610/13/WS6acd96b3e4b06d4aa05627b7.html, (Date Accessed: 16.10.2026).
