UK Warns EU’s ‘Made in Europe’ Push Could Weaken British Auto, Tech and Clean‑energy Supply Chains

A recent European proposal to favour products originating within the EU has prompted alarm in London, where ministers and industry figures warn of unintended fallout for British exporters and multinational manufacturers. The measure aims to strengthen industrial resilience and accelerate the EU’s green transition by giving procurement and subsidy preferences to locally made goods. For the UK, which remains tightly integrated with continental production networks, that approach threatens to shift investment decisions, increase compliance burdens and fragment supply chains that span the Channel. Automakers are singled out because modern vehicle manufacturing—especially electrification—relies on parts, software and battery components sourced from multiple countries; any new localisation condition would force reconfiguration of sourcing and could slow production ramp‑ups. Technology firms and clean‑tech manufacturers similarly face higher costs and operational complexity as rules of origin, certification regimes and eligibility criteria are tightened. Beyond direct commercial disruption, UK officials fear the policy will create a political dynamic that encourages more mercantilist industrial policies across Europe, complicating post‑Brexit cooperation on standards and trade. Financial markets and investors could reprice risk for cross‑border projects, weighing the prospect of higher barriers and narrower subsidy access. The British government is pressing for carve‑outs, grandfathering provisions and clearer rules to avoid sudden loss of market access for goods already in production. If unresolved, firms may delay investments or shift future projects into the EU to secure subsidy eligibility, with long‑term implications for employment and regional industrial strategy in the UK. Diplomatically the dispute tests the limits of post‑Brexit alignment: the UK can contest measures at international fora or pursue bilateral negotiations, but such routes take time and carry uncertainty. In short, the EU’s intent to boost its own manufacturing base collides with the practical realities of integrated supply networks, leaving companies and policymakers scrambling for pragmatic fixes to prevent economic fallout.