UK car industry to press EU for two-year delay to Brexit EV tariffs
Summary
UK carmakers plan to seek a two-year delay to tariffs on electric vehicles traded with the EU. The European Commission has proposed changes that would effectively delay the battery-origin rules by about one year, while UK and EU negotiations continue.Key Facts
- The tariffs are scheduled to begin on 1 January unless the UK and EU agree to another delay.
- The rules require electric-car batteries to use materials and components from the UK or EU to avoid a 10% tariff.
- The rules were first due to take effect on 1 January 2024, but the UK and EU extended the deadline in December 2023.
- Many battery factories in the UK and EU are not yet producing enough batteries to meet demand.
- Carmakers in the UK and Europe are calling for another delay to the rules.
- The European Commission has shared proposals with the automotive industry, but has not formally shared them with the UK government.
- UK and EU talks also involve British access to EU “Made in Europe” subsidies and whether the UK should match EU tariffs on Chinese car imports.
- The European Automobile Manufacturers Association estimates that 82% of EU electric-car and van exports to the UK would face the 10% duty in 2027, adding €1.47bn in costs next year.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.
