France has abandoned its opposition to the United Kingdom being treated as if it were part of Europe for the purposes of the draft Industrial Accelerator Act — commonly described as the "Made in Europe" legislation — conditioned on London adopting the European Union's position on tariffs for Chinese electric vehicles (EVs).
The change of stance, announced on Thursday, brings Paris into line with Germany, which had supported the UK’s request that British-made goods be considered European under the proposed rules. The Industrial Accelerator Act is intended to shield manufacturing in Europe from competition it describes as being driven by low-cost Chinese production.
Agreement conditions
Under the arrangement, the UK could be designated as European for the purpose of qualifying for protections and support set out in the draft law, but only if the British government formally aligns with the EU’s agreed approach to tariffs on EVs imported from China. The EU position on those tariffs has become a central point of negotiation as member states weigh industrial and trade policy responses to the rise of Chinese electric vehicle makers.
The legislation remains at the draft stage and would require further negotiation and endorsement before becoming law. Support from key EU capitals has been variable during the drafting process, with France previously opposing UK inclusion while Germany had backed London’s position. The recent shift by Paris narrows a major point of disagreement among European governments but leaves wider questions about the design and scope of the Industrial Accelerator Act unresolved.
Implications for UK-EU trade ties
If implemented, the arrangement would be a notable example of pragmatic cooperation on industrial policy between the EU and the UK despite the broader political distance since Brexit. It would also tie access to certain EU industrial protections to alignment on trade measures, illustrating how tariff policy and supply‑chain protections are becoming interlinked in debates about competitiveness and national industry strategy.
Next steps will depend on formal agreements between London and EU institutions, and on how the draft legislation is finalised in coming months. Lawmakers and industry groups on both sides of the Channel will be watching closely for details on eligibility rules, enforcement mechanisms and any carve-outs that might affect affected sectors such as automotive manufacturing.