Reform UK deputy leader Richard Tice is looking for a 100% tariff on Chinese electric vehicles, a proposal that would disrupt the pricing, investment plans and stock strategies of UK dealers representing the fast growing recent entrants.
Chinese brands including BYD, Chery, Omoda, Jaecoo, Leapmotor, AION and Geely are expanding their UK retail networks, with established dealer groups committing significant capital to showrooms, training, demonstration fleets and aftersales operations.
A tariff at the extent proposed by Tice would substantially increase the import cost of affected vehicles unless manufacturers absorbed some or the entire duty.
Talking to GB News, Tice warned: “Western automobile manufacturers are heading into the dustbin of history.”
“Unless we put 100 per cent tariffs on all Chinese electric vehicles because the Americans have done, otherwise we is not going to have a automobile industry in five to seven years,” he said.
Dealer investment faces disruption
The rapid expansion of Chinese manufacturers has created significant recent franchise opportunities for UK dealer groups.
Many dealers have opened dedicated Chinese-brand showrooms or introduced the franchises alongside existing operations so a sudden tariff change could weaken the worth advantage underpinning those investments and impact expected sales volumes.
The US raised its tariff on electric vehicles imported from China to 100% in 2024. The European Union took a distinct approach, applying manufacturer-specific countervailing duties following an investigation into Chinese state subsidies.
Britain has thus far declined to follow either model with an extra tariff specifically targeting Chinese EVs but any change could see manufacturers respond by absorbing a part of the tariff, reducing specification, changing supply routes or accelerating European and UK production.
Tariff proposal lacks detail
Tice didn’t explain whether his proposed tariff would apply to vehicles in accordance with their country of manufacture or the ownership of the brand and the way tariffs would impact UK manufacturing commitments.
Tice linked his demand to pressures facing Jaguar Land Rover, which has announced plans to chop around 4,000 jobs globally over the subsequent two years through a voluntary redundancy programme.
JLR’s restructuring comes amid a broader combination of weaker profitability, US tariffs, competition from Chinese manufacturers and the continuing financial impact of its 2025 cyber attack.
Tice also criticised Transport for London’s use of Chinese-built electric buses. “Where’s this pro-British manufacturing strategy after we’re sending all our money to Beijing to purchase Chinese buses, for heaven’s sake?” he asked.
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This Article First Appeared At www.am-online.com
