Connecting "Made in Europe" Status to China Trade Policy
UK Draws a Line Against Rejoining the EU Customs Union

The Financial Times (FT) reported on September 24 (local time) that the European Union (EU) has urged the United Kingdom to increase tariffs on Chinese vehicles and to align its trade policy toward China with that of the EU.

European Union flag. Photo by Reuters and Yonhap News Agency

European Union flag. Photo by Reuters and Yonhap News Agency

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The EU is implementing trade defense measures, including imposing tariffs of up to 45% on Chinese electric vehicles. The EU is concerned that if the UK maintains lower tariffs against China, Chinese products could enter the EU via the UK, thereby circumventing the trade barriers.


The EU has reportedly communicated its position that, for UK-made products to receive equal treatment within the bloc, the UK must participate in the EU's trade policies toward China.


This discussion is also connected to the EU's "Made in Europe" initiative, which aims to favor European-made goods in order to protect domestic industries from Chinese competition. The UK, having left the EU, is demanding that its products receive the same treatment as EU-made goods.


The EU maintains that if the UK joins the customs union, many of the issues surrounding the application of the "Made in Europe" designation to UK products can be resolved. However, the UK government continues to rule out rejoining the EU customs union.


Nevertheless, even if the UK does not return to the customs union, there remains a possibility that it will expand trade defense measures similar to those adopted by the EU against China. Earlier this year, the UK doubled tariffs on Chinese steel to 50%.



If the UK raises its trade barriers against China, trade friction with China—one of its major trading and investment partners—could intensify.


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