UK car industry faces ‘difficult trade-off’ between Chinese and EU markets
Source: The Guardian ·
Britain under pressure to put tariffs on cheap Chinese vehicle imports ahead of protectionist trade measuresBritain’s car industry is grappling with a “difficult trade-off” between China and Europe, as manufacturers struggle to balance the benefits of both markets ahead of looming trade measures that could restrict UK exports to the EU.The UK is an outlier in choosing not to put import taxes on…
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Britain’s car industry is grappling with a “difficult trade-off” between China and Europe, as manufacturers struggle to balance the benefits of both markets ahead of looming trade measures that could restrict UK exports to the EU. The UK is an outlier in choosing not to put import taxes on Chinese vehicles, even as the US has shut them out almost entirely, and the EU imposes duties of up to 45%. EU officials reportedly warned Andy Burnham last month that the UK must put tariffs on cheap Chinese vehicles otherwise Brussels would impose protectionist “made in Europe” barriers on British exports to the bloc, hitting British carmakers in their largest market. Ministers have so far resisted such calls, with Jonathan Reynolds, the business secretary, arguing any levies would “probably be reciprocated” – costing UK manufacturers sales in China. Tariffs would also raise prices for British drivers, who have flocked to cheaper Chinese models, and could deter brands such as Chery, which is in…