Brussels has told British Prime Minister Andy Burnham that Britain should raise tariffs on Chinese cars and align more closely with European Union trade policy to avoid barriers to key British exports, the Financial Times reported on Friday, citing two people familiar with the matter.
The EU has also told London that joining the bloc’s customs union would provide the clearest solution to British concerns about equal treatment for its products, according to the newspaper. An EU official cited by the FT said a customs union would resolve most of the problems associated with proposed “Made in Europe” rules, as well as concerns over differences in tariffs.
“A customs union would solve most of the problems of ‘made in Europe’,” the official told the newspaper. “And also the question of tariff differences, which leads to fears the Chinese could avoid our tariffs by routing through the UK.”
Burnham said this week that he would argue for Britain to be treated as a “trusted partner” under the EU’s proposed “Made in EU” rules. He has warned that excluding Britain from the policy could damage the country’s car industry, which is closely linked to European supply chains.
The proposed “Made in Europe” policy is intended to reduce reliance on Chinese components by giving priority to goods produced within Europe. The approach is a particular concern for the British automotive industry, which supplies parts to EU production networks and sells vehicles across the bloc.
The dispute comes as the EU seeks to address what European Commission President Ursula von der Leyen described this month as an “unsustainable” trade deficit with China. In her State of the Union address to the European Parliament, von der Leyen said the bloc would use every available tool to reduce the imbalance.
For Britain, the issue centres on how its automotive industry can maintain access to the European market while operating outside the EU’s customs framework. Burnham’s call for trusted-partner status reflects concerns that rules favouring European-made products could disadvantage British manufacturers and suppliers despite their established links with EU-based production.
The FT report also points to a wider concern in Brussels over tariff differences between Britain and the EU. According to the EU official quoted by the newspaper, the bloc fears Chinese companies could use Britain as a route around EU tariffs if British duties remain lower than those imposed by the bloc.
Reuters said it could not immediately verify the Financial Times report. The European Union and the British Foreign Office did not immediately respond to Reuters requests for comment made outside business hours.
