EU capitals are currently considering whether U.K. auto exports should qualify for preferential treatment under the Buy European program, as Brussels moves to protect its member economies from U.S. tariffs, China’s manufacturing might and an influx of cheap EVs subsidized by Beijing.
European Union lawmakers and officials are preparing new legislation to deny overseas manufacturers access to subsidies, tax incentives and public procurement deals. The bloc slapped double-digit tariffs on Chinese EVs in 2024.
But Reynolds said the U.K. government’s calculation on whether to impose tariffs differed from that of the EU.
“We are an export-orientated sector. So clearly, you shouldn’t do anything that risks your export markets, and you always have to take heed of retaliatory action if you put tariffs in place,” he said Sunday, calling the U.K.’s position on Chinese EVs “finely balanced.”
Cutting the U.K. out of Brussels’ new industrial program “wouldn’t be to the benefit of Europe,” Reynolds added.
The Made in Europe push is supposed to be “about greater resilience, greater autonomy for European industry in the face of very significant pressures from both the U.S. and China,” Reynolds added. “Now, if that is the objective, it stands to reason that the U.K., that’s the second-biggest economy in Europe, should be a part of that.”