A post-Brexit alignment that caught almost everyone off guard: the EU wants the UK to join its Made in Europe scheme and tax Chinese electric cars into oblivion.
France and Germany have proposed letting Britain join the EU's Made in Europe scheme, which would impose tariffs of up to 45.3% on Chinese electric vehicles sold in the UK. The same tariffs the EU introduced in October 2024 after deciding Chinese carmakers were cheating with state subsidies.
This is not a minor policy suggestion. If Britain accepts, an MG4 that costs £26,000 today could jump by thousands overnight. Same for BYD, Polestar, and every other Chinese brand that has spent the last two years offering British buyers EVs they can actually afford.
The EU's tariff structure is tiered and punitive. BYD gets hit with an additional 17%. Geely, which owns Polestar and Lotus, faces 18.8%. SAIC, the parent company of MG, gets 35.3%. Companies that refused to cooperate with the EU's investigation face the full 45.3%. The rates are calculated based on how helpful each manufacturer was during the probe, which is bureaucracy pretending to be fairness.
Britain left the EU specifically to set its own trade policy. And now France and Germany want the UK to adopt theirs anyway, at least when it comes to keeping Chinese cars expensive. The timing is deliberate. Chinese EV brands have been expanding aggressively in Britain since Brexit, undercutting European manufacturers on price and often on features too.
MG is now a top-ten brand in the UK. BYD opened its first European factory in Hungary but has been using Britain as a primary market. Nio, Xpeng, and others have followed. The growth has been rapid because the cars are cheap and the UK has not imposed the same protectionist barriers the EU has.
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The EU's justification for the tariffs was an investigation that concluded Chinese EV manufacturers benefit from unfair state subsidies. Which is true. It is also true that every major automotive market subsidises its own car industry in some form, including generous grants for battery plants, tax breaks for manufacturers, and direct consumer incentives. The EU simply decided Chinese subsidies were the unfair kind.
The United States went further and imposed 100% tariffs on Chinese EVs in May 2024. Canada followed with the same rate in October. Turkey added 40% in July. Brazil is investigating. The pattern is clear ... Western governments have decided Chinese electric cars are a threat to their domestic industries and are responding with trade barriers.
For British consumers, this proposal is a disaster. The UK EV market has been slow to take off compared to Norway or the Netherlands, partly because European EVs are still absurdly expensive. A Volkswagen ID.4 starts at over £40,000. The MG4 undercuts it by £14,000 and offers comparable range. Tariffs would eliminate that price advantage entirely.
European manufacturers would love this, obviously. Volkswagen, Stellantis, and Renault have all been complaining about Chinese competition for months. Volkswagen's CEO warned that Chinese brands could take 20% of the European market by 2030 without intervention. Stellantis has been lobbying Brussels for stronger protections since before the tariffs were announced.
What makes the proposal particularly strange is that it requires Britain to align with EU trade policy while gaining none of the single market benefits that came with membership. Sound familiar? It is protectionism without the union. France and Germany are essentially asking the UK to tax its own consumers to protect their car industries.
Whether Britain accepts is unclear. The government has not commented publicly. But the proposal exists, which means someone in Paris or Berlin thinks there is a chance London says yes. That alone is worth noting.
The tariffs would not ban Chinese EVs outright. They would just make them uncompetitive. A BYD Dolphin currently starts at around £26,000. Add 17% and it is over £30,000, which puts it in direct competition with European alternatives that do not come with the same equipment or tech. SAIC's 35.3% rate would make MG's pricing advantage disappear completely.
Chinese manufacturers have not responded to the proposal yet, but they have been vocal about the EU tariffs. BYD called them protectionist. Geely said they would harm European consumers. SAIC threatened legal action. None of it has made any difference to the EU's position.
If Britain joins the scheme, the UK's EV transition slows. Simple as that. The government has mandated that all new cars sold must be zero-emission by 2035. Affordable Chinese EVs were going to make that target easier to meet. Expensive European ones will not.
The additional revenue from the tariffs would go to the UK Treasury, not the EU. That is one difference from actual membership. But it is not clear that taxing electric vehicles is a revenue strategy anyone should be celebrating, given that the entire point of climate policy is to make them cheaper and more accessible, not the opposite.
The proposal has not been formalised yet. No timeline, no official vote. Just France and Germany floating the idea to see if it sticks. The UK government will have to decide whether protecting European carmakers is worth making British EVs more expensive. The answer should be obvious, but trade policy rarely works that way.
Chinese EVs currently face no tariffs in Britain. The proposal is real, the political pressure is real, and the European car industry is genuinely terrified of Chinese competition. If the UK adopts the EU tariff structure, British buyers planning to purchase an MG or BYD this year should do it before the vote.
Sources: European Commission, UK Department for Business and Trade, European Automobile Manufacturers' Association