U.K. Trade Minister Anas Sarwar says London should work with Brussels to counter China’s carmaking dominance.

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LONDON — U.K. Trade Minister Anas Sarwar has said Britain and the European Union must “work together and act in lockstep” to tackle China’s dominance in the automotive sector.

The comments mark the clearest signal yet that the U.K. government is prepared to align with EU tariffs on Chinese electric vehicle imports in order to secure access to Brussels’ Made in Europe industrial program.

Asked by POLITICO on the sidelines of the German-British Business Summit at Mansion House whether Britain would consider slapping tariffs on Chinese electric vehicles, Sarwar said discussions with European partners “continue.”

“The automotive sector and partnership remain strong, but do we have to grapple with the challenge that comes from rapid expansion in China? Of course we do,” he said. “The more that the U.K. and the EU work together and act in lockstep, the better it is for both the U.K. and the European Union,” he added.

Britain is working with the European Commission to avoid a 10% electric vehicle tariff from the start of next year, when stricter rules of origin under the Brexit trade deal are due to take effect. The U.K. is also lobbying for British businesses to be included in the EU’s Made in Europe policies.

U.K. officials believe that London and Brussels have shared challenges when it comes to China's anti-competitive trade practices and that a joined-up response with coordinated policies is the best approach to dealing with Beijing.

The EU Industrial Accelerator Act, which gives EU-made products preferential treatment in certain public procurement projects, could leave British manufacturers at a disadvantage, should the country be excluded.

The German government and some EU officials had argued that Britain’s resistance to aligning with the bloc’s tariffs on Chinese electric vehicles weakened its case for inclusion.

Speaking to German business leaders and policymakers during his keynote address, Sarwar said the U.K. and its European neighbors face similar challenges.

“We’ve got muscular protectionism on one side, we’ve got rapid expansionism on another side, and governments across the world of similar economy sizes to ourselves in Germany are having to work through what does that mean for our supply chains,” he said.

“I don’t say to our EU colleagues that they shouldn’t have a Made in Europe campaign,” Sarwar added. “We have a Made in U.K. campaign. … What I’d say, though, is let’s not have unintended consequences by taking the reaction too far and damaging our businesses in the process.”

The U.K.’s Business Secretary Jonathan Reynolds had previously indicated he was less bullish on electric vehicle tariffs. Speaking to POLITICO last month, he said the U.K.’s calculation on whether to impose tariffs differed from that of the EU.

“We are an export-orientated sector. So clearly, you shouldn’t do anything that risks your export markets, and you always have to take heed of retaliatory action if you put tariffs in place,” he said Sunday, calling the U.K.’s position on Chinese EVs “finely balanced.”

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Andy Burnham’s suggestion that the U.K. could rejoin the EU was met with a more muted response from Brussels itself.

The U.K. prime minister is due to set out his vision for relations with the EU during a major speech on Tuesday.

The policy risks becoming another hurdle in London’s efforts to reset relations with the bloc.