The European Commission intends to impose tariffs on electric vehicles (EVs) traded between the UK and EU starting next year.

The British government, along with European carmakers, are calling for a deferral of a post-Brexit trade rule that would add excessive costs to the industry. The requirement, known as "rules of origin," mandates that EVs traded across the Channel must have a certain percentage of their battery and parts sourced from the EU or UK to avoid 10% tariffs. The EU justifies the tariffs as a means to encourage domestic battery production and address the decline in battery investments within the bloc.

  • The European Commission plans to impose tariffs on EVs traded between the UK and EU from next year.
  • The "rules of origin" requirement mandates a specific percentage of battery and parts sourcing to avoid tariffs.
  • The tariffs aim to encourage domestic battery production but raise concerns.
  • Decline in battery investments in the EU and Chinese dominance pose challenges.
  • EU carmakers may struggle to meet the new rules, impacting their market share.
  • Tariffs could slow EV sales in the UK and increase consumer prices, warns the UK car industry.
  • The UK government seeks a joint UK-EU solution to support automotive manufacturing.

Source: Financial Times, find the full article here: