UK keeps the door open to tariffs on Chinese electric cars as it eyes a place in Europe's industry plan

The story

The British government has not ruled out putting tariffs on electric vehicles made in China if the UK joins a new European Union scheme to support local industry.

On Friday, Downing Street said it would welcome being included in the Industrial Accelerator Act, which is part of the EU's Made in Europe package. The comment came after France dropped its opposition to Britain taking part.

Joining the scheme could mean the UK following the same approach as the EU. Ministers have chosen not to rule out tariffs on Chinese electric cars as part of that.

China responded quickly. Beijing warned that such a step would be discriminatory, a sign that any move on tariffs could strain trade ties between the two countries.

The decision puts the government in a tricky spot. Closer ties with Europe on industry could help British manufacturers, but China is a major supplier of affordable electric vehicles, and a trade dispute could carry costs of its own.