# Burnham's tariff gamble with China and the EU

> Andy Burnham faces pressure to raise Chinese EV tariffs to 45 percent to rejoin the EU, but risks deterring investment and sales in Britain.
- Title: Burnham's tariff gamble with China and the EU | Shortify
- Summary: Andy Burnham faces pressure to raise Chinese EV tariffs to 45 percent to rejoin the EU, but risks deterring investment and sales in Britain. German…
- Keywords: andy burnham, friedrich merz, chinese electric cars, eu tariffs, uk trade policy, chinese investment, electric vehicles, politics, news, Burnham's, tariff, gamble
- Source: The Independent — https://independent.co.uk/cars/electric-vehicles/chinese-ev-tariff-eu-burnham-merz-b3063672.html
- Published: 2026-10-08T16:53:10+00:00
- Read time: 2 min
- Topics: andy burnham, friedrich merz, chinese electric cars, eu tariffs, uk trade policy, chinese investment, electric vehicles, politics, news
## Merz sets EU condition
German chancellor Friedrich Merz has reportedly warned Andy Burnham that rejoining the EU will not be possible unless the UK raises tariffs on Chinese electric cars to forty five percent.

> rejoining the EU will not be possible unless the UK raises tariffs on Chinese electric cars to 45 per cent
## The trade-off dilemma
Britain has benefited from relatively low tariffs on Chinese cars, boosting trade relationships with China and encouraging Chinese investment in the UK. But joining the EU could exclude British-made cars from its Made in Europe incentive scheme.
## How EU tariffs work
Across the EU, car makers owned by the state or those not cooperating with anti-subsidy investigations face the highest tariffs. MG owner SAIC, Chinese government owned, gets the full forty five percent tariff. Privately-owned BYD faces twenty seven percent and Geely twenty eight point eight percent.
## Tariffs haven't raised prices much
An MG four Urban lists at twenty seven thousand one hundred ninety euros in Germany, around twenty three thousand pounds, and costs from twenty three thousand four hundred ninety five pounds in the UK. Prices for other Chinese brands in Europe are similarly unaffected by tariffs.
## Chinese makers build in Europe
Chinese car makers are moving quickly to European production to avoid tariffs. BYD's Hungarian factory is coming on stream. Chery is talking to Nissan about using its Sunderland plant. Leapmotor is discussing production with co-owner Stellantis at Madrid and Zaragoza factories.
## Geely and Changan's advantages
Geely owns Volvo, which has factories in Sweden and Belgium, and owns Lotus. Chinese state-owned Changan has had a research and development facility in the UK for years, giving these makers existing infrastructure to work with.
## UK unlikely to attract factories
Tariffs may accelerate local production from Chinese car makers, but probably not in the UK. When Tesla opened its Berlin factory, Elon Musk said Brexit made the UK too difficult. Burnham needs to charm both the EU and Chinese makers to attract factory investment.

> Brexit made it too difficult
## Risk of scaring investors away
The UK must avoid scaring Chinese car makers off. These brands employ many people in British operations and through retailers. If they withdraw, owners would lose servicing and repair support, and Britain would lose jobs and investment.

> the last thing we'd want is for all those Jaecoo owners to have nowhere to take their cars for servicing or repairs
## Chinese makers staying for the long term
Chinese car makers show no signs of leaving the UK market. More brands are planning to come to Britain, and sales numbers show British buyers are very happy to buy Chinese. The balancing act between EU ties and Chinese investment will define UK automotive policy.
## Key takeaway

German chancellor Friedrich Merz has reportedly warned Andy Burnham that rejoining the EU requires raising tariffs on Chinese electric cars to forty five percent, creating a difficult choice between EU ties and Chinese investment.