Key Takeaways
- Electric vehicles (EVs) imported from China face a 100% tariff in the U.S.
- Chinese brands have had more luck in the U.K. market.
- Building on the success of MG, BYD and others, Leapmotor and XPeng are the latest Chinese automakers to hit the U.K.
As of April 2025, the United States imposes a 100% tariff on electric vehicles (EVs) imported from China, essentially locking brands like BYD and NIO out of the American market.
Faced with this challenge, Chinese EV makers are refocusing their international growth plans on more trade-friendly markets, and the U.K. is one of their top priorities.
Chinese EVs in the UK
While Chinese firms have targeted the U.K.’s EV market for years, buyers initially favored Tesla and European brands.
Early successes include BYD’s contract to build London buses. Meanwhile, the company that makes the capital’s iconic taxis is now a wholly owned subsidiary of Geely, which has phased out fossil fuel engines.
Cracking the British Car Market
After a slow start, more Chinese electric cars have started to appear on U.K. roads, with a significant uptick in the last 12 months.
Less than a year after entering the U.K. market, more than 70 dealerships now stock Omoda and Jaecoo vehicles. The Chinese sister brands have achieved monthly sales in the thousands and plan to launch new models in the coming months.
Meanwhile, Leapmotor opened its first British showrooms in March, with XPeng soon following suit. Between them, the two firms plan to open dozens of retail locations in the country by the end of the year.
Finally, BYD’s luxury sub-brand, Denza, is expected to launch in the U.K. in early 2026. BYD already has over 40 retail locations in the country.
European Governments Rethink Tariffs
Amid rising trade protectionism in 2024, there was speculation that the U.K. would follow the EU and introduce additional import duties on Chinese EVs.
In the end, however, Trade Minister Jonathan Reynolds opted not to raise tariffs on Chinese cars, stating that he would prioritize open export markets for British manufacturers.
Even the EU, which imposed levies of up to 45.3% on Chinese-made EVs last year, is considering alternative ways to protect domestic manufacturers.
According to Reuters, the European Commission is considering replacing tariffs on BYD, Geely and SAIC with minimum price agreements, as the EU and China negotiate a coordinated response to Donald Trump’s trade war.
