Britain has decided not to follow Brussels. Business and Trade Secretary Jonathan Reynolds said on 18 September 2026 that the government has no plans to add tariffs on Chinese-built cars, leaving the UK with a flat 10% import duty while the EU charges some Chinese makers more than four times that.
The gap, in numbers
The two regimes started from the same 10% baseline and diverged when the EU added anti-subsidy duties calculated per manufacturer.
| Market | Duty on a Chinese-built car |
|---|---|
| United Kingdom | 10%, flat, all makers |
| EU — BYD | 27% |
| EU — SAIC/MG | 45.3% |
Reynolds's argument is about exposure rather than about China. "You keep all these things under careful review, but the fundamental thing is an export-led industry," he said. "If you put trade protections up, they'll probably be reciprocated and you'll lose things." He was notably unwilling to frame Chinese competitiveness purely as subsidy: "The Chinese economic model produces things at incredible cost, and there is a lot of innovation there."
What the open door has produced
The market has moved faster than the policy debate around it.
| Period | Chinese-brand share of UK registrations | Volume |
|---|---|---|
| 2023 | 4% | 83,000 |
| Jan–Aug 2026 | 15% | 223,000 |
Nearly a quadrupling of share in under three years, in the market that has the lowest barrier in Europe.
Not everyone selling cars in Britain is relaxed about it. Nissan's regional boss Max Messina argued Britain will have to bring its tariff policy closer to Europe's — his concern being that once new "Made in Europe" rules take effect, the UK becomes the soft entry point through which Chinese vehicles reach European markets. Nissan builds in Sunderland, which makes it an interested party, but the routing problem it describes is real.
What a UK or European buyer should take from this
For a UK buyer, the immediate effect is that the cheapest electric cars stay cheap. The 35-point tariff gap between London and Brussels on an MG is a large part of why the UK price list looks different from Germany's, and Reynolds has now said out loud that the government intends to leave it there.
For Tesla the pressure is more direct in Britain than on the continent. Tesla competes in the UK against Chinese rivals that pay 10%, while in the EU those same rivals carry duties of 27% to 45.3%. The tariff wall that shelters Tesla's European pricing simply does not exist here — which is one reason Chinese brands have taken share in the UK faster than in the EU, even as Britain's BEV share passed 30% under the ZEV mandate.
It also sets up a contrast worth watching. Brussels spent this week asking Beijing to cap its hybrid exports under threat of a fresh anti-subsidy investigation. London spent it ruling more tariffs out. Two markets, one supplier, opposite instincts — and UK buyers currently on the cheaper side of the split.
Reynolds kept the review clause. "You keep all these things under careful review" is not a permanent commitment, and Nissan is unlikely to be the last manufacturer to press the point.