Impending higher UK import taxes on Chinese-made cars?
Discussion
At present cars imported into the UK from China pay the standard 10% import tariff, the same as cars from Japan, Korea or anywhere else outside Europe.
Conversely, the same Chinese-built car imported into an EU country is charged a variable extra tariff; so for example a Polestar 2 sold across the channel pays 19.3% + 10% import taxes, for a total of nearly 30%.
However as the EU continues to raise domestic subsidies and import taxes against the threat of China, they are now threatening to lock the UK out unless we align with their tariffs - specifically to match their import taxes on Chinese EVs.
Now it's always possible that the UK government may refuse, or some other deal may be done. And if import tariffs are imposed, there will probably be some notice and opportunity to buy a car already 'in the pipeline'. But if you are thinking of ordering a car to spec with some lead time, well, you might be better off moving sooner rather than later.
There's also the question of imports of Chinese ICE and hybrid cars, which have risen in Europe in response to EV-specific import tariffs; it wouldn't be a surprise to see the EU extend taxes to these, otherwise they have the double whammy of going backwards on both trade and the environment.
Conversely, the same Chinese-built car imported into an EU country is charged a variable extra tariff; so for example a Polestar 2 sold across the channel pays 19.3% + 10% import taxes, for a total of nearly 30%.
However as the EU continues to raise domestic subsidies and import taxes against the threat of China, they are now threatening to lock the UK out unless we align with their tariffs - specifically to match their import taxes on Chinese EVs.
FT said:
Brussels has warned Andy Burnham that Britain would need to raise tariffs on Chinese cars and align more closely with EU trade policy if it wants to avoid “made in Europe” barriers that would hit key exports.
https://www.ft.com/content/5453be91-7bd9-4097-9e83...Autocar said:
According to a report in the Financial Times, the UK has been told by the EU that it must apply the additional tariffs, which rise to 45% depending on the car maker; and in return the EU is prepared to treat Nissan, Range Rover and Bentley EVs as ‘Made in Europe’ under the proposed Industrial Accelerator Act (IAA), which is designed to better protect European industry from hyper-competitive Chinese alternatives.
https://www.autocar.co.uk/car-news/business-corpor... (£)Autocar said:
Chinese firms are able to sell higher levels of EVs in the UK than in the EU, because the UK hasn't applied the same ‘countervailing’ import tariffs on EVs built in China.
The UK may need to change its position on that for the EU to agree for its inclusion in the proposed ‘Made in Europe’ regulation changes, which would favour cars built within the bloc.
https://www.autocar.co.uk/car-news/new-cars/nissan...The UK may need to change its position on that for the EU to agree for its inclusion in the proposed ‘Made in Europe’ regulation changes, which would favour cars built within the bloc.
Now it's always possible that the UK government may refuse, or some other deal may be done. And if import tariffs are imposed, there will probably be some notice and opportunity to buy a car already 'in the pipeline'. But if you are thinking of ordering a car to spec with some lead time, well, you might be better off moving sooner rather than later.
There's also the question of imports of Chinese ICE and hybrid cars, which have risen in Europe in response to EV-specific import tariffs; it wouldn't be a surprise to see the EU extend taxes to these, otherwise they have the double whammy of going backwards on both trade and the environment.
Chery are looking to borrow Line 1 of Sunderland from Nissan to produce UK built cars. Ptobably to bypass all of this.
Nissan and Chery International UK to study manufacturing Chery International UK passenger vehicles at Sunderland Plant https://share.google/GCdpsOWUtWNgEDOL4
Nissan and Chery International UK to study manufacturing Chery International UK passenger vehicles at Sunderland Plant https://share.google/GCdpsOWUtWNgEDOL4
hidetheelephants said:
Is re-export from the UK to the EU a significant trade? If there are boat-loads of LHD stuff arriving here and immediately going to Rotterdam then maybe they have a point.
Can't circumvent the tariffs applied - the Country of Origin will remain as China even if shipped from UK to EU. LRDefender said:
Surely if the U.K. gov introduce punitive taxes on Chinese cars then it's the hard working, cash strapped British consumer that foots the bill. As a capitalist society don't we want competition?
Yep. Who’s the boss? UK not being part of the EU anymore may cause some pro EV posters to self implode. Cheap Chinese cars, fantastic. Oh… wait…The UK has a slight problem in that it is a RHD market in a LHD region.
If the Chinese continue to dump product in the UK to gain market share at what point do the established European manufacturers decide it isn’t worth engineering and tooling a RHD car because their is no return on investment?
Then all you’ll be able to buy is Chinese stuff. Which is China’s plan mind you.
If the Chinese continue to dump product in the UK to gain market share at what point do the established European manufacturers decide it isn’t worth engineering and tooling a RHD car because their is no return on investment?
Then all you’ll be able to buy is Chinese stuff. Which is China’s plan mind you.
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