The UK is reportedly considering tariffs on Chinese-made electric cars as it seeks to stay aligned with new EU rules designed to favour vehicles built in Europe.

The move comes as Chinese carmakers rapidly expand their presence in Britain. Chinese brands accounted for around 23% of UK new-car sales in September, with BYD, Jaecoo and Leapmotor among those gaining ground.

However, an EV-only tariff could leave a major loophole. Much of the recent growth has come from hybrid and plug-in hybrid models, which may not be affected. Jaecoo’s 7, for example, is sold largely with combustion and plug-in hybrid powertrains, potentially leaving one of China’s strongest-selling models untouched.

The EU already imposes duties of up to 45% on Chinese-made EVs, while proposed “Made in Europe” rules could also affect UK-built cars from manufacturers including Jaguar Land Rover and Nissan.

That has increased pressure on Britain to secure recognition as a trusted European manufacturing partner. The Society of Motor Manufacturers and Traders has warned that excluding UK-built vehicles could damage the deeply integrated UK and EU automotive industries.

Chinese manufacturers may respond by increasing local production. Nissan is reportedly exploring a deal to build Chery vehicles at its Sunderland plant.

In other words, tariffs may not stop Chinese carmakers entering Britain. They could instead encourage them to build their cars in the United Kingdom.