Business Secretary Jonathan Reynolds has admitted that Jaguar Land Rover's precarious position is shaping the Government's thinking as ministers consider whether to impose tougher tariffs on cheap Chinese electric vehicles entering the UK market.

Speaking at the West Midlands Growth Summit, Reynolds strongly suggested that concerns over possible Chinese retaliation against export-reliant firms, such as the region's major carmakers, are influencing the ongoing tariff review. He confirmed that trade measures remain "under review" but stressed that no decision or announcement is imminent.

The issue has gained urgency as Chinese brands including Omoda and Jaecoo rapidly expand their foothold in Britain. Their combined UK market share jumped to 15.8% in August, up sharply from 5.5% a year earlier, driven largely by the popularity of the Jaecoo 7 — a model that has been nicknamed the "Temu Range Rover" because of its budget pricing compared with British-made luxury SUVs.

That surge has fuelled calls from parts of the industry for the UK to follow the lead of the United States and European Union, which have imposed tariffs of 100% and 45% respectively on Chinese-made EVs. Britain remains an outlier among major Western economies in not applying similar import taxes.

However, JLR's recent announcement that it will cut up to 4,000 jobs as part of a global restructuring has complicated the picture, raising fears that introducing new tariffs could prompt Chinese retaliation against UK carmakers that depend heavily on exports.

Speaking to BirminghamLive, Reynolds said: "Our automotive industry in the UK is largely export led... When we are looking at trade defence measures, we always take into account the needs of [the whole] industry."

He noted that companies are able to formally request tariff action through the Trade Remedies Authority, adding that opinion within the sector is divided. "There have always been some parts of our automotive industry who want it and parts that don't and I have to take all those needs into account," he said.

Alongside the tariff debate, Reynolds used the summit to announce up to £50 million in local funding aimed at supporting innovation across the UK's car supply chain, as part of the Government's wider Drive 35 programme designed to boost domestic automotive competitiveness.

Source: Birmingham Live

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