The Labour government, which has committed to reinstating a 2030 deadline for phasing out new ICE car sales, is coming under pressure to decide whether to follow the EU and US in raising duties on Chinese EV imports.
Britain’s business secretary Jonathan Reynolds is reported to be closely monitoring the situation and consulting with industry leaders on the next steps after a meeting with EU trade commissioner Valdis Dombrovskis at a G7 ministers’ meeting on July 16.
“Any solution would have to take the UK’s auto sector exports into account and be calibrated for the UK economy,” stated a government summary of the talks.
On June 12, the European Commission announced that it would apply provisional countervailing duties on Chinese-made EVs based on the results of its nine-month investigation into the levels of state subsidies received by different Chinese or China-based carmakers. This unfair support, it believes, results in hefty distortions in the European market.
The move by the Commission followed a May 14 declaration by the United States which said it will increase tariffs on Chinese EVs and certain hybrids to 100% from August 1.
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