After the European Union imposed temporary tariffs on Chinese electric vehicles, the British government said it was "concerned" about the impact of electric vehicle imports and was considering possible action.
Britain's Department for Business and Trade said that after meeting with EU Trade Commissioner Valdis Dombrovskis at the G7 ministers' meeting in Italy on Tuesday, Business Minister Jonathan Reynolds said he was "vigilant" about the issue and was talking to the industry about next steps.
A government statement summarizing the talks read: "Any solution must take into account the UK automotive industry's exports and be tailored to the UK economy."
The new government is facing questions about whether it will follow the EU and US in imposing tariffs on Chinese electric cars. The United States has announced plans to impose a 102.5 percent tariff on Chinese electric vehicles, although imports are currently close to zero, and Canada has also said it is considering tariffs.
The challenge for Britain's new Labour government, which promised to phase out sales of new internal combustion engine cars by 2030, will be to strike a balance between protecting the local industry, which produced more than 1m cars last year, and making affordable electric vehicles available to consumers.
On April 2, 2025, local time, US President Trump announced the implementation of the "America First Tariff Plan", imposing a 10% basic tariff on all imported goods and an additional 25%-50% tariff on key areas such as steel and semiconductors.
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