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UK weighs countervailing duties on Chinese EVs

The plan could help premium brands compete in the UK, while raising the risk of retaliation that could hurt China-focused operations.

Reported · Written up by our desk · Trade & Tariffs

HousingWire reports the UK is reportedly considering countervailing duties on Chinese electric vehicles, potentially aligning with higher tariffs the EU has imposed.

For Tata Motors Passenger Vehicles, the development is framed as a two sided impact, with a possible price edge in the UK against low cost Chinese rivals, and downside in China if Beijing retaliates.

The piece notes that some Chinese brands have rapidly expanded their UK presence, accounting for about 15% of new car sales through most of 2026 before brands including BYD, MG and Jaecoo reportedly captured 23% in September.

It adds that EVs represent two thirds of China’s domestic automobile market, and says Chinese vehicles have allegedly reached the EU through the UK using Britain’s relaxed 10% tariff.

The article also says Tata’s position in China could face further pressure if duties trigger backlash, even as premium UK models like Range Rover, Defender and Jaguar are described as not directly competing with affordable Chinese EVs.

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