The EU has pressed British Prime Minister Andy Burnham to raise tariffs on Chinese cars and align more closely with EU trade policy. This push comes as Brussels seeks to avoid a scenario where the UK could act as a "backdoor" for Chinese goods, particularly electric vehicles, to circumvent EU tariffs and enter the European market. The EU's "made in Europe" policy aims to protect its manufacturers from Chinese competition through subsidies and public procurement, and British products risk being excluded from these programs if the UK does not conform.

The current UK tariff on Chinese EVs is 10%, significantly lower than the EU's potential tariffs of up to 45%. This divergence has allowed Chinese manufacturers to capture a 16% share of Britain's new car market this year. EU officials suggest that joining the bloc's customs union would be the best solution for Britain to ensure equal treatment for its products and prevent Chinese goods from being routed through the UK. They fear a "Turkey-across-the-Channel" scenario, where Britain becomes a conduit for Chinese imports, rather than a "Singapore-on-Thames" competitor.

British Business Secretary Jonathan Reynolds has stated that the UK is keeping tariffs on Chinese EVs "under review" but expressed concerns about potential retaliatory actions from Beijing if tariffs are imposed. China is a crucial market for British luxury car brands like Jaguar Land Rover and Bentley. Reynolds argued that excluding the UK from the EU's "made in Europe" initiative, which aims for greater resilience and autonomy for European industry, would be detrimental to Europe, especially given the UK's status as the second-largest economy in Europe. The UK is actively lobbying to include its car, chemical, and energy supply chains in the EU's industrial programs to avoid an estimated €24 billion economic impact on the EU side alone.

The situation presents a dilemma for the UK government, which is also seeking to attract Chinese investment into its car manufacturing sector, including a potential deal for Chinese automaker Chery to produce cars at Nissan's Sunderland plant. Auto industry leaders, including Nissan's European boss Massimiliano Messina, have warned that the UK's divergent tariff policies could turn it into a "corridor" for Chinese EVs into the EU, further complicating trade relations.