Andy Burnham has been urged by leading UK car manufacturers to impose tariffs on Chinese car imports, amid concerns over the impact on Britain’s automotive sector. The call comes as the UK grapples with a challenging trade situation involving Chinese imports and access to the European Union market.
Currently, British consumers can purchase Chinese-made cars without import taxes, but the European Union has warned that it may introduce barriers on British car exports if the UK does not adjust its trade policies. This places Andy Burnham, the Makerfield MP, in a difficult position as he faces pressure to act.
Business Secretary Jonathan Reynolds has cautioned that any tariffs imposed on Chinese vehicles could be met with reciprocal measures from China, potentially escalating trade tensions.
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Former Vauxhall chair Tim Tozer has emphasised the importance of tariffs, describing them as “vital” to prevent the decline of the UK car industry. “We are at last knockings now, trying to save the industry,” he stated.
Emily Sawicz from consultancy RSM UK highlighted the complex trade-off facing the industry, noting that the UK cannot afford to drift without clear direction. She said Chinese investment might serve as a lifeline for some manufacturers, while access to the European market remains crucial for smaller companies. She added, “Being excluded risks UK suppliers becoming increasingly shut out of those European opportunities. Manufacturers need clarity on which direction the government intends to take so they can make long-term investment decisions.”
Ian Plummer, commercial director at Autotrader, pointed out that competition from Chinese car brands has made vehicles more affordable, encouraging more people to buy new cars. Chinese models have gained popularity among some of the UK’s top-selling vehicles.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), cautioned that the UK and EU automotive industries are deeply integrated. He warned that excluding British-produced vehicles from the EU’s largest market would cause mutual harm to both industries.