UK Trade Minister Jonathan Reynolds is "monitoring" tariffs on Chinese electric vehicles as the UK seeks to participate in the European purchasing program.
Concerns About Tariffs
Reynolds stated in an interview at the Labour Party conference that he is examining this issue more seriously and thoroughly than many other matters, adding that "different sectors of our industry have different demands from government policy."
European Union capitals are considering whether UK car exports should benefit from special advantages under the European purchasing program, while Brussels is trying to protect its economies from US tariffs, China's manufacturing power, and the influx of subsidized low-cost electric vehicles from Beijing.
Support for Exports
Reynolds also stated that the UK government's calculations regarding tariffs differ from those of the European Union. He said: "We are an export-oriented sector. Therefore, clearly, you should not do anything that jeopardizes your export markets, and you must always consider retaliatory action if you impose tariffs."
He described the UK's position on Chinese electric vehicles as "carefully balanced" and added that the UK's exclusion from Brussels' new industrial program "would not be in Europe's interest." Reynolds also emphasized that this program must include the UK, the second largest economy in Europe.
He noted that the program should help achieve "greater resilience and more self-sufficiency for the European industry against serious pressures from both the US and China."
Economic Interests
Excluding UK supply chains from the "made in Europe" program could eliminate €24 billion of economic activity solely on the EU side, and the UK automotive lobby, SMMT, raised this warning. UK chemical and energy supply chains may also face restrictions under these regulations.
The conflict between London and Brussels regarding the extent of the UK's inclusion in European supply chains may delay a crucial summit aimed at concluding negotiations on a range of trade issues later this year.
