Chinese EVs may face UK ban under Trump trade deal – sending car prices soaring

US President Donald Trump is set to push for a ban on the sale of Chinese-made electric vehicles (EVs) in the UK as part of ongoing trade negotiations between the countries. A well-placed White House source has told The i Paper that such a demand from the Trump administration could “potentially come up in follow-up discussions” around the recently agreed UK trade deal with America. The deal, which lowered US tariffs on Britain, included strict security requirements surrounding UK supply chains. Chinese-made EVs are banned in the US over national security concerns that they could spy on drivers or locations and be remotely manipulated from Beijing to create chaos on roads.

Government not commenting 'on speculation'

Although the Prime Minister’s office said the Government wouldn’t comment “on speculation around talks expanding the trade deal”, if such a ban was implemented the embargo could see the price of EVs soar in Britain as Chinese electric cars are up to 34 per cent cheaper than other models. Starmer would not have to cave in to any demand by Trump to ban Chinese EVs and has already insisted the UK would not accept chlorinated chicken or hormone-treated beef from the US during the trade talks. Latest figures show that there were 28,883 Chinese EVs sold in the UK in March, which accounts for 7.5 per cent per cent of the EV market but their popularity is expected to surge as a result of their affordability, longer range and suite of technology that comes as standard. Of the 66 EV car brands on sale in the UK, 13 are from Chinese manufacturers. These include BYD, Geely, MG, Ora, Polestar, Volvo and XPENG. After just two years in the UK market, BYD holds the same 1.8 per cent sales share as Elon Musk’s Tesla, which has been operating here for 12 years. (Photo: Olsi Shehu/Anadolu via Getty)

'UK must not be bullied by US'

Critics of such a ban claim it would also damage the UK’s ambitions to shift car buyers into EVs by 2030 and stymie its aim to reach net zero emissions by 2050. Adrian Ramsay MP, co-leader of the Green Party, said: “The UK Government needs to make its own decisions on trade and not be bullied by the US into blocking measures that will deliver on net zero commitments. Workers in the car industry and businesses crave certainty – and that must include a proper debate and clear decisions over the role of China and imports of EV cars. The Government should be leading the debate and action.” Erin Baker, editorial director of digital automotive marketplace Auto Trader, added: “These new entrants are setting new standards in car design, technology, and production, forcing all brands to work harder to attract buyers. In the long term, this will lead to more sustainable and affordable EV production, essential for a successful transition and cleaner air.” (Photo: James Manning/PA)

Trump yet to make a public position

When asked whether Trump has plans to call on the UK to ban Chinese EVs, the White House source pointed to Section Four of the trade deal which refers to “strengthening alignment and collaboration on economic security”. The text goes on to state that “both countries intend to strengthen cooperation on economic security, including by coordinating to address non-market policies of third countries” and that they “intend to cooperate” on the “effective use of investment security measures” and “export controls”. While the source said Trump has yet to make a public position on this he added that it is “fair to say it’s something that could potentially come up in follow-up discussions based on the agreement text”. (Photo: Peerapon Boonyakiat/SOPA Images/LightRocket via Getty)

UK retailers looking to stock Chinese brands

According to data compiled by Auto Trader, the number of UK retailers looking to stock Chinese brands jumped significantly last year, from 34 to 173. By the time the UK’s ban on the sale of new petrol and diesel cars comes into force in 2030, Chinese brands could account for 25 per cent of the EV market in the UK, or 400,000 cars on the road. BYD has sold 11,782 cars so far this year, a 631 per cent increase on the 1,611 at the same point in 2023. (Photo: Matt Cardy/Getty)

Growing concerns

As The i Paper revealed on Monday May 12, the previous US administration under President Joe Biden warned the UK about the espionage risks and threats to national security from Chinese EVs more than a year ago. The warning, which came from the US Department of Commerce but included input from Washington’s National Security Agency, claims that China “likely represents the broadest, most active, and persistent cyber espionage threat to US government and private-sector networks”. In recent weeks The i Paper has also revealed the Ministry of Defence (MoD) has banned cars relying on Chinese technology from sensitive military sites across the country. In some cases, the MoD has asked staff to park their EVs at least two miles from their workplace. However, growing concerns over EVs from China being sold in the UK were echoed this week by former MI6 boss Richard Dearlove, who warned MPs that China could switch off Britain’s traffic lights and “immobilise London” because its companies control so much crucial technology in the UK. (Photo: Leon Chen/Omodo)

'A risk of destroying our car industry'

Former Conservative Party leader Sir Iain Duncan Smith, said: “The US under the previous Biden administration took a very important decision to ban electric vehicles from Chinese manufacturers from 2027. This decision is critical as it is about national security concerns. The Trump administration is now leaning on its allies, particularly the UK, to follow suit and do the same. The problem that we now face is that China is certainly going to ‘dump’ their electric vehicles in the UK. The British Government should respond positively to the US otherwise we run the risk of destroying our domestic car industry because of cheap Chinese vehicles.” (Photo: Belinda Jiao/Getty)

Ban 'a victory for common sense'

Luke de Pulford, executive director of campaign group the Inter-Parliamentary Alliance on China, welcomed any US call on the UK to ban Chinese EVs. “This would be a victory for common sense,” he said. “The EU, US, Canada have all imposed bans on Chinese EVs to protect their industries and defend against security threats. It is good to see us acting in concert with our closest allies.” On Wednesday, China criticised the US/UK trade deal, claiming such an agreement should not target other nations. “Cooperation between states should not be conducted against or to the detriment of the interests of third parties,” Beijing’s foreign ministry told the Financial Times. (Photo: Ian Forsyth/Bloomberg via Getty)

'Continuing to engage pragmatically'

A spokesman for the Department for Business and Trade said: “This Government signed a deal with the US in the national interest to secure thousands of jobs across key sectors including the auto industry, protect British businesses and lay the groundwork for greater trade in the future. In line with our long-term, consistent approach, trade and investment with China remain important to the UK. We are continuing to engage pragmatically in areas that are rooted in UK and global interests and co-operate where we can, compete where we need to, and challenge where we must.” Neither Chinese EV manufacturers nor the Chinese Embassy in London responded to requests for comment. (Photo: Brent Lewin/Bloomberg via Getty)