Handelsblatt: Britain Should Refrain from EU Tariffs on Chinese Electric Vehicles

The British government should not emulate the EU in imposing tariffs on Chinese electric vehicles. While the EU is implementing these tariffs to protect its mass car manufacturers, the situation in the UK is different. A significant portion of the UK’s mass vehicle production has already been relocated to the EU, resulting in a trade deficit of £25 billion in vehicles with the EU. Nissan is the only major manufacturer that remains in the UK, with 70 percent of its production exported to the EU. Thus, the EU's tariffs would protect vehicle production in Sunderland. At the same time, the British automotive industry is steadily shifting towards high-quality, custom brands. These premium vehicles dominate the UK's global, non-EU exports, valued at £28 billion, and are not threatened by Chinese imports. However, potential retaliatory tariffs from China could jeopardize this sector. Therefore, the UK's calculus is different. The more the United Kingdom stays out of this trade war, the better it will fare. Investments in the automotive industry could return to the UK, which would be seen as a reliable base for low-tariff global exports. British consumers could switch to electric vehicles at lower costs. The United Kingdom would trade a large trade deficit with the EU for a more moderate one with China. Even if the EU might not be pleased, British jobs should take priority.