UK government considers higher tariffs on Chinese brands
The UK government is considering imposing higher import tariffs on Chinese brand.
It has been reported that Business Secretary is considering the move to support established manufacturers who are struggling to compete against Chinese brands with state subsidies.
The UK has become the number one export market for Chinese brands, which Chinese cars accounting for 23.3% of new car sales in September and nearly 25% of the market during the first nine months of the year.
Imposing higher tariffs would also align UK and EU policy. The UK applies the standard 10% import duty on Chinese vehicles while the EU has raised tariffs for specific manufacturers, with BYD paying an additional 17% duty, Geely 18.8% and SAIC a further 35.3%.
However, China has warned that it would respond to higher tariffs with a spokesperson telling The Telegraph: “China is firmly opposed to any discriminatory practice involving tariff hikes or restrictive measures on Chinese products. We have expressed serious concern to the UK side regarding the reports in question.
“Trade protectionism runs counter to WTO rules and market principles. It will only disrupt the normal order of trade and harm the interests of consumers. We will continue to follow developments and respond accordingly.”
