The EU is pressuring the UK to align EV tariffs with EU levels (up to 45% on Chinese vehicles) and consider joining the EU customs union to prevent Chinese EVs from using the UK as a backdoor into European markets. UK businesses—particularly automakers like Nissan—face a dilemma: tariffs could deter Chinese investment while non-alignment risks exclusion from EU supply chains and subsidies. Chinese EV makers have already captured 16% of the UK new car market in 2026, exploiting the UK's lower tariffs versus the EU's 2024+ measures.