Letter: UK has to steer clear of tariffs on Chinese EVs

The new UK government should not mimic the EU’s punitive tariffs on Chinese-built electric vehicles (“EU to push ahead with tariffs on Chinese EVs despite German opposition”, Report, June 12). Our interests are different.

The EU tariffs are designed to protect its volume car manufacturers. However, most of the UK’s volume carmaking has already offshored to the EU. That’s why we have a £25bn trade deficit with the EU in motor vehicles. Nissan is the only major producer left — and 70 per cent of its output is exported to the EU anyway. In effect, EU tariffs will protect car manufacturing in Sunderland.

Meanwhile, our auto industry is moving relentlessly towards high-value, customised marques. These premium vehicles dominate our £28bn worth of global (non-EU) exports. They are not threated by Chinese imports. They will be, if we incur retaliatory tariffs from China.

So, the calculus for the UK is different. The more we stay out of this trade war, the better off we shall be. Auto investment will be drawn back to the UK as a dependable base for low-tariff global exports. UK consumers can switch to EVs at a lower cost. And the UK will swap a big UK-EU deficit for a more moderate UK-China one. The EU won’t like it — at all — but British jobs should come first.

Phil Radford
Pershore, Worcestershire, UK