EU may postpone tariffs on electric vehicles in post Brexit trade delay

In order to reduce tensions, the European Union is apparently planning to postpone tariffs on electric vehicle sales between the UK and the EU.

From January, electric car exports between the EU and the UK would be subject to a 10% levy under EU rules.

Some experts, including the European Automobile Manufacturers Association (ACEA), believe that manufacturers will find it “practically impossible” to comply with the regulations.

The bulk of automakers rely on Chinese companies for critical components used in electric vehicles, such as battery parts.

According to Maro efovi, vice-president of the European Commission, “made in Europe” will be interpreted broadly next year.

He said he would be “very happy” if a deal was struck between the EU and UK before the end of the year, adding that he wanted the situation to be solved soon.

The Slovak diplomat told the Financial Times that the European Commission wanted to redefine what was considered under the “rules of origin”.

Earlier this month, the UK’s Business and Trade Secretary Kemi Badenoch said the EU’s refusal to delay post-Brexit tariffs is driven by “ideological reasons”.

She said the EU’s position was “very harmful and dangerous”, adding that it was ignoring German car manufacturers who had been calling for tariffs to be ditched.

Unless the rules of origin requirements are repealed, firms may lower production by up to 480,000 automobiles between January 2024 and December 2026.

Unless restrictions are lifted, some EV manufacturers could face an additional £3.7 billion bill during this time period.

“This doesn’t have to be complicated,” a UK government official stated.

“European automakers, the UK government, and numerous EU state governments have all asked for a postponement of the deadline. The Commission should pay attention.”

This comes as the European Commission announced an investigation into Chinese-subsidised electric vehicles.

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