EU URGES BRITAIN TO RAISE TARIFFS ON CHINESE CARS TO PREVENT TRADE LOOPHOLES

Sat 26 September 2026:

Brussels seeks closer UK-EU trade alignment as Britain pushes for protection from proposed “Made in Europe” rules

The European Union has urged Britain to increase tariffs on Chinese-made cars and bring its trade policies closer to those of the bloc, amid growing concerns in Brussels that Chinese goods could enter the European market through the UK.

The recommendation comes after weeks of discussions between British officials and the EU over London’s request for UK-made products to receive treatment similar to goods produced within EU member states, the Financial Times reported, citing two people familiar with the talks.

An EU official said a customs union could address many of the concerns surrounding the proposed rules.

“A customs union would solve most of the problems of ‘made in Europe’ … and also the question of tariff differences, which leads to fears the Chinese could avoid our tariffs by routing through the UK,” the official said.

EU plans preferential treatment for European-made goods

The European Commission’s proposed Industrial Accelerator Act would give products manufactured in Europe — including cars, steel and green technologies — preferential treatment in public procurement.

Britain is seeking assurances that its exporters will not be disadvantaged by such measures as the EU moves towards greater economic protection for European production.

However, British Prime Minister Andy Burnham has previously said his government will maintain Labour’s election commitments, including its opposition to joining a customs union or the EU single market.

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Brussels fears UK could become route for Chinese goods

An EU official said Brussels’ concerns about Britain had changed significantly since Brexit.

“There is a cruel irony in how European concerns about Britain have evolved: from fears of a ‘Singapore-on-Thames’ to fears of a ‘Turkey-across-the-Channel’,” the official said.

“The concern today is no longer a hyper-competitive, globalised Britain on Europe’s doorstep, but a Britain that could become a backdoor into the European market for Chinese goods,” the official added.

The comments reflect EU concerns that differences between British and European tariff policies could create opportunities for Chinese manufacturers to circumvent EU trade barriers by routing products through Britain.

UK faces balancing act over trade policy

The report said a senior British official acknowledged the difficulty of securing closer access to the European market while maintaining independent trade policies.

“It’s hard to argue we want to be on the inside of ‘fortress Europe’ when the other side can point at tariff policies that are arguably undermining the rising walls of the fortress.”

The dispute highlights a continuing tension in post-Brexit trade relations: Britain wants closer access to the EU market while retaining control over its own tariffs and trade agreements, while Brussels is seeking greater alignment to prevent differences from creating potential trade loopholes.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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