Brussels has told British Prime Minister Andy Burnham that the UK would need to raise tariffs on Chinese cars and align more closely with European Union trade policy to avoid potential barriers under the bloc’s proposed “Made in Europe” rules, as per reports.
The message comes as London seeks equal treatment for British products under the EU’s planned industrial policy. According to the report, the bloc has indicated that closer alignment with EU trade measures, including higher tariffs on Chinese vehicles, could help prevent British exporters from facing disadvantages in the European market.
The EU has also told the UK that joining the bloc’s customs union would provide the most comprehensive solution to the issue.
An EU official was quoted as saying that a customs union would address many of the concerns surrounding the “Made in Europe” rules, including differences in tariffs that could create concerns about Chinese goods being routed through Britain.
The proposed “Made in Europe” framework is part of the EU’s broader effort to strengthen European industrial capacity and reduce reliance on foreign supply chains, particularly those linked to China.
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The rules could give preference to European-made products and components in strategic sectors, potentially affecting British companies that are integrated into European supply chains.
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Burnham has said Britain should be recognised as a “trusted partner” under the proposed rules, warning that exclusion could affect the UK’s automotive industry. British manufacturers are closely connected to European supply chains and depend heavily on access to the EU market.
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The UK government has said it is engaging with European industry and EU counterparts to address the potential impact of the Industrial Accelerator Act. The legislation remains under consideration and could change during the EU’s legislative process.