Why are we accepting Chinese electric cars with no Tariffs? – Europe charges up to 38%!

The growing popularity of Chinese cars globally has a bunch of reasons behind it — some economic, some technological, and some political. Here are the key factors, plus some of the trade‐offs and what it might mean going forward:
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Why so many Chinese cars are being bought
1. Price competitiveness
Chinese manufacturers often undercut competitors (from Europe, Japan, USA) on price, even while offering many of the same features. Large domestic scale, lower labour costs, and a well-developed local supply chain give them cost advantages. AutoCango+3xunchengcars.com+3Auto Hit+3
2. Government support & industrial policy
The Chinese government has made EVs / New Energy Vehicles (NEVs) a strategic priority. Subsidies, tax incentives, infrastructure build-out, R&D support, and favourable regulation make it easier for Chinese brands to scale faster. AutoCango+3Autocar+3People’s Daily+3
3. Strong EV / battery technology developments
Chinese firms like BYD, CATL (battery maker), etc., are pushing innovation in battery tech, driving ranges, fast charging, smart features. For buyers wanting EVs, this makes Chinese EVs more attractive. People’s Daily+2AutoCango+2
4. Better equipment and features for money
Many Chinese cars come with features that are optional extras on cars from more established brands (driver-assistance, good infotainment, safety features) as standard or included, making them good value. Auto Hit+2AutoCango+2
5. Exports are growing aggressively
The volume of cars exported from China has risen rapidly. For example, in 2024 China exported about 6.41 million vehicles, up significantly from previous year.
Domestic market saturation (or slowing growth) is pushing manufacturers to look overseas.
6. Filling gaps in emerging markets
In many countries, consumers are still more sensitive to price, and Chinese brands are offering a good “step up” for people who couldn’t previously afford many of the features or EVs from premium brands. As developing countries or less‐wealthy regions expand auto ownership (or start shifting to EVs), Chinese automakers are stepping in. autoworldjournal.com+1
7. Brand & market expansion strategy
Chinese automakers are investing in overseas presence, adapting designs to meet different safety / regulatory requirements, establishing dealer networks etc. They’re taking the time to localize (or at least comply) so the cars are acceptable in different markets. InsightTrendsWorld+1
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Some trade-offs and challenges
While there are many upsides, there are also reasons why adoption isn’t universal, and some risks:
• Brand recognition / trust. Many buyers are still wary about reliability, resale value, service infrastructure, spare parts availability, etc. Newer brands might have fewer long-term track records in certain markets.
• Regulation / safety / standards. To sell in many countries, cars need to meet safety, emission, crash, and other regulatory standards. That takes effort and cost.
• Tariffs and trade barriers. Some countries are introducing tariffs or stricter import rules on Chinese EVs / cars, citing concerns about unfair subsidies, etc. Financial Times+1
• Overcapacity & price pressures. The Chinese market has many manufacturers; sometimes overcapacity leads to aggressive price cutting, which can squeeze profit margins. Also, “good‐enough” features might be offered, but long-term durability and quality might lag in some cases.


WHY NO HIGH IMPORT DUTIES ?

That’s an interesting angle. There are reasons the UK (and many other countries) haven’t imposed high, China-specific taxes (tariffs) on Chinese-cars (especially EVs) — and there are political, economic, and legal constraints. Below are some of the factors, plus what the UK is doing or has considered.
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What the UK currently does
• The UK’s general import tariff on cars (from outside free trade agreements) is about 10%. If a Chinese car is imported, that’s the base rate. GB News+2BBC+2
• The UK trade secretary has explicitly said that there are no current plans to follow the EU in imposing extra tariffs on Chinese EVs/subsidised imports. en.ce.cn+1
• To impose something extra (like an anti-subsidy or countervailing duty) you need to have a formal complaint, an investigation, etc. The UK’s Trade Remedies Authority (TRA) would have to be involved. So far, apparently no UK automaker has submitted such a request. en.ce.cn+1
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Why the UK hasn’t (yet) taxed Chinese cars more heavily

Here are some of the reasons:
1. Legal / WTO / trade rules constraints
Manufacturing subsidies, unfair competition etc. are regulated under international trade law (WTO rules, trade remedy mechanisms). To impose extra tariffs (anti-dumping, countervailing), you need evidence that imports are harming UK domestic industry, unfair subsidies exist, or dumping is occurring. That means investigations, due process, etc. It’s not just political will — it’s legal and procedural.
2. Lack of formal complaint / pressure from UK industry
As above, UK carmakers haven’t officially asked, via the TRA, for investigations into Chinese EV manufacturers being subsidised. Without domestic industry raising the issue formally, the government tends not to initiate such trade remedy processes. Automotive News Europe+1
3. Desire to keep EV prices down, meet climate goals
Electric vehicles are part of the strategy to reduce greenhouse-gas emissions. Having more affordable EVs helps increase uptake more quickly. High import duties would raise prices for consumers, which could slow down the transition to zero emissions vehicles. There’s a trade-off between protecting domestic producers and pushing green targets (e.g. getting people off petrol/diesel).
4. Economic / supply chain realities
UK car manufacturers export a lot (including to the EU). Imposing harsh import duties might provoke retaliation, or damage trade relationships. Also, Chinese cars might fill gaps in the market, offer lower cost options that consumers want; removing those might mean fewer choices, more expensive cars for many people.
5. Regulatory / rules of origin / trade agreements
The UK has trade rules and agreements (including the Trade and Cooperation Agreement with the EU) that include “rules of origin” requirements for qualifying for tariff free or reduced tariffs. These affect how much non-UK/EU content is required. If most parts, battery, etc. are made in China, you may not be able to avoid tariffs or may fail qualification for incentives. But changing those rules is complex. GOV.UK+2Business Money+2
6. Political considerations / balancing acts
Tariff increases can raise prices for consumers, cause diplomatic tension, possibly provoke trade retaliation. The government must balance between helping domestic car industry, keeping prices affordable, maintaining trade relations, and borderline protectionism concerns.
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What the EU is doing by contrast

To give perspective, the EU has already moved forward with imposing extra tariffs on certain Chinese EVs, citing subsidies, etc.:
• The EU has introduced countervailing duties on imports of BEVs from China. Rates vary depending on brand, cooperation, etc. For example, additional tariffs ranging from ~17-38% on top of the standard 10%. Telegraph+3Your Gate to Europe+3BBC+3
• The EU did this after investigations into whether Chinese automakers are gaining unfair advantages through subsidies. Chartered Institute of Export+1
So in some ways, the UK is being more cautious / slower in adopting similar policies.
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What might change / conditions that could lead to higher tariffs
• If UK domestic automakers complain formally and provide evidence of being harmed by Chinese imports, that could trigger investigations and potential tariffs via anti-dumping or anti-subsidy rules.
• If public / political pressure increases, especially if the perception is that cheap imports are undermining local jobs, manufacturing, etc.
• If trade relations shift, or as part of trade policy changes post-Brexit, the UK might decide to mirror more of the EU’s moves.
• If the UK government decides that helping domestic EV / battery supply chain production is a priority, then tariffs or tax measures could be used as levers for that.

What UK carmakers / industry voices are saying

• The UK Trade Secretary, Jonathan Reynolds, has publicly said that currently there are no plans to impose tariffs specifically on Chinese electric vehicle imports. chinadailyhk
• That said, Reynolds did leave open the possibility in principle: he said the decision isn’t ruled out, if it benefits the UK’s automotive export sector. chinadailyhk
• The fact that the UK automotive industry has not formally requested a trade remedies (anti-subsidy) investigation against Chinese EV imports has been noted as a barrier to action. (Such a request would be a necessary step under UK law to justify extra tariffs. ) chinadailyhk+1
• Some industry commentary warns that imposing new import tariffs on Chinese EVs could undermine climate and consumer goals — making EVs more expensive and slowing adoption. Motor Finance Online
• There’s also analysis that restricting Chinese EV imports would raise costs in the vehicle finance/leasing market, which is a significant part of car purchasing in the UK. Motor Finance Online
• On the other hand, some UK automakers seem nervous. For example, I saw that BMW paused a planned EV investment in its Oxford (Cowley) plant, citing uncertainty including tariffs among the pressures. (This is more of a side effect than a statement demanding tariffs.) The Times
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What’s happening (or has happened) in Parliament / trade policy
• In the Zero Emission Vehicle Mandate debate in Parliament (April 2025), MPs raised concerns about external pressures on UK automakers (e.g. costs, exports) but there was no decisive move to impose China-specific tariffs reported. Hansard
• The UK government has said it’s “concerned” about the influx of EV imports (especially from China) and is “considering potential action,” particularly in light of the EU having already taken steps. Bloomberg
• Some analysts expect the UK may adopt an “alternative strategy” rather than simply mimic the EU’s tariff approach. In other words, the UK could use softer tools (e.g. incentives, regulatory changes) instead of direct tariffs. Politico Pro
• There is also the constraint that to impose tariffs (especially anti-subsidy or countervailing duties), a formal investigation under the UK Trade Remedies regime is needed — and that has not yet been initiated by the domestic industry. chinadailyhk+1
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How close are we to change?

I’d assess: not very close yet, but it’s on the radar. Here are the factors pointing toward possible change, and the obstacles:
• On the “on the radar” side:
 • The government has signalled it’s watching developments in Europe (where the EU has already imposed tariffs). Bloomberg
 • If UK automakers or trade bodies formally submit a complaint to the Trade Remedies Authority, that could open the door to investigations.
 • If public or political pressure grows—especially around job losses, industrial decline, or trade deficits—that could push the issue.
 • Shifts in global trade posture (e.g. more “industrial policy” thinking) might make tariffs more politically palatable.
• On the barrier side:
 • No formal complaint has been lodged.
 • Trade laws / WTO / procedural constraints make unilateral, aggressive tariff moves difficult without strong justification.
 • Raising tariffs risks pushing up car prices, which would anger consumers, and could conflict with climate / EV adoption goals.
 • The government may prefer using non-tariff tools (incentives, regulation, subsidies) over protectionism.
 • Some automakers are warning of negative side effects of tariffs (costs, slower uptake of EVs).
So, unless something shifts (e.g. domestic car industry raises the issue forcefully, new trade pressures, political will), I don’t expect large new China-specific tariffs to be introduced imminently.