UK car sector to seek two-year postponement of Brexit electric vehicle tariffs

Under the terms of the post-Brexit trade deal, electric cars traded between the UK and the EU must use locally sourced batteries or face a 10% tariff. Although an initial deadline was delayed in December 2023, carmakers argue that domestic battery production is still not scaling fast enough to meet European demand, leaving the industry largely reliant on imports. While the European Commission has floated proposals that would effectively delay the rules by a year, industry leaders argue a minimum two-year extension is necessary to prevent severe financial damage. Lobby groups estimate that a large majority of EU electric car exports to the UK could face heavy customs duties next year, driving up costs for manufacturers and consumers alike.