EU set to recommend delay to post-Brexit electric car tariffs

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A three-year delay in the introduction of tariffs on new electric cars is reportedly expected to be recommended by the European Commission.
A three-year delay in the introduction of tariffs on new electric cars is reportedly expected to be recommended by the European Commission.

A three-year delay in the introduction of tariffs on new electric cars is reportedly expected to be recommended by the European Commission.

The European Union (EU)’s executive body will advise the bloc’s members to postpone implementing post-Brexit rules of origin requirements, according to business news agency Bloomberg.

The new trade rules – scheduled to come into force from January 1 – will see tariffs of 10 per cent imposed on cars imported between the UK and the EU if at least 45 per cent of their value does not originate in the UK or EU.

Manufacturers of electric cars were expected to struggle to meet that threshold as battery production in Europe has not increased as quickly as hoped.

There have been growing calls from car makers and the UK Government for the rules to be postponed.

The Society of Motor Manufacturers and Traders has estimated that tariffs could result in an average price rise of £3,400 on EU-manufactured pure battery electric vehicles bought in the UK.

Around half of these types of cars bought by UK buyers are from the EU. EU member states will need to agree with the European Commission’s recommendation if the rules are to be delayed.

Press Association – by Neil Lancefield