British manufactures could be excluded from European Union supply chains under Brussels’ proposed “made in Europe” legislation, the British Chambers of Commerce (BCC) has warned. The EU is considering stricter requirements on the use of domestic components in products such as cars, aiming to reduce reliance on China and the US. While designed to strengthen European production, the BCC cautioned that the rules could create significant disruption for UK businesses supplying parts to EU-based firms. The policy could chill cross-border trade and create chaos for EU producers reliant on UK components. BCC has urged the UK Government to negotiate an exemption for domestic companies. Industry stakeholders have called on Brussels to recognise UK firms as European under the new rules, highlighting the importance of safeguarding supply chain access. Brussels is reportedly considering rules requiring up to 70% of a product’s components to be of EU origin. Additional proposals could include sustainability standards, limits on foreign investment and new procurement regulations. The BCC warned that UK manufacturers, particularly in the automotive sector, could be most exposed. The new rules also pose a potential obstacle to Prime Minister Keir Starmer’s EU reset, announced in May 2025, which has already produced agreements on carbon pricing, electricity, and animal and plant health. A government spokesperson added: “The UK is committed to being a close and trusted European partner. We are engaging with the EU on ‘made in Europe’ and working together to boost growth and expand trade opportunities.”