JLR weighs in as Business Secretary keeps Chinese car tariffs under review

The Business Secretary, Jonathan Reynolds, says tougher tariffs on cheap Chinese electric cars remain "under review", but has signalled that the risk to exporters such as Jaguar Land Rover is part of his thinking.

Speaking to Birmingham Live at the region's Growth Summit in Coventry on Thursday 8 October, Mr Reynolds said no announcement was imminent.

"Keeping those export markets open"

"It is something we always keep under review and will continue to do so but I'm not about to make an announcement on it," he said. "Our automotive industry in the UK is largely export led. JLR has a huge global export market. When we are looking at trade defence measures, we always take into account the needs of the whole industry. Keeping those export markets open is part of that calculation."

He said companies could also ask the Trade Remedies Authority to investigate, and that some parts of the car industry wanted tariffs while others did not.

The pressure for tariffs

Chinese brands such as Omoda and Jaecoo have been winning a growing share of the UK market. The United States has imposed a 100 per cent tariff on Chinese electric vehicles and the European Union has imposed tariffs of up to 45 per cent, and some MPs and industry figures want the UK to follow. Antonia Bance, MP for Tipton and Wednesbury, said the issue was a massive concern for businesses in her area that rely on JLR and other carmakers.

But a tariff could invite retaliation from Beijing, and China has been an important market for JLR's luxury cars.

The Jaguar Type 01

The comments came days after JLR unveiled the Jaguar Type 01, the first production car of the brand's radical relaunch, at a premiere in New York. The four-door electric grand tourer:

• has three electric motors producing up to 1,030 horsepower;
• accelerates from 0 to 62mph in about 3.2 seconds;
• has a claimed range of up to 400 miles on the US test cycle;
• will cost around £130,000 in the UK.

Orders are expected to open in early 2027, when production is due to start at JLR's plant in Solihull. The company is targeting wealthy younger buyers in the United States and overseas.

A difficult time for JLR

JLR recently announced up to 4,000 job losses as part of a global restructuring, and is working through a voluntary redundancy programme. Thousands of families across Birmingham and the surrounding area depend on JLR and its suppliers, from Castle Bromwich, where Jaguars were built for decades, to engineering firms across the city.

Earlier this month, JLR reported that strong sales in the UK and other markets had helped offset weaker demand in China and the Middle East.