"EU urges UK to raise tariffs on Chinese cars"...'Pressure on China' intensifies

"EU urges UK to raise tariffs on Chinese cars"...'Pressure on China' intensifies

FT reports, citing sources..."EU demands UK join 'Made in Europe'"

The European Union (EU) has urged the UK to raise tariffs on Chinese-made cars, the British daily Financial Times (FT) reported on the 24th (local time).

The EU is currently applying various trade defense measures, including imposing tariffs of up to 45% on Chinese electric vehicles, and the gist is that the UK should also raise trade barriers against China in line with EU policy.

According to two sources familiar with the matter, the EU recently communicated that for British products to receive equal treatment within the bloc, the UK must join the EU's 'customs union'.

The root of the problem is the 'Made in Europe' policy recently pursued by the EU. The EU is implementing a 'Made in Europe' policy that actively favors EU manufacturers to protect its domestic industry from competition with China.

The UK, not a member of the EU, has continued to demand that its products receive the same preferential treatment as EU products, but the EU insists that if the UK wants to avoid disadvantages, it must first participate in tariffs against China.

This is because if the UK maintains low tariffs against China, Chinese products could enter Europe via the UK, effectively circumventing the EU's trade barriers.

An EU official told the FT, "If the UK joins the customs union, most of the 'Made in Europe' issues that the UK has recently faced could be resolved."

In addition, the EU has implemented a surveillance measure to separately track imports of titanium dioxide from the UK starting this month.

The FT pointed out that this measure is effectively a signal of pressure on the UK. It suggests that if the UK does not align with the EU on its trade policy towards China, the EU could take even stronger protective measures against the UK.

The British government is currently drawing a line on the EU's demand to join the customs union. However, even if the UK does not officially join the EU's customs union or single market, it is still possible to participate in trade pressure against China.

In fact, the UK had already doubled tariffs on steel from China to 50% earlier this year, aligning with EU measures.

However, if the UK expands its trade defense measures against China, friction with China, a major investor and trading partner, is an unavoidable situation.

China is also reported to have conveyed, during the first phone call between UK Prime Minister Andy Burnham and Chinese President Xi Jinping, that the UK should fully protect China's legitimate rights and interests.