STORY
The European Union and UK car industries are pressing the European Commission for a further delay to electric vehicle tariffs due to take effect under the Brexit trade agreement at the start of 2027. The issue centres on rules of origin, which determine whether vehicles qualify for tariff-free trade between the UK and the EU.
Under the current timetable, vehicles will need to meet tougher local content thresholds, including requirements on battery packs and battery cells. Industry representatives have warned that European battery supply chains have not developed quickly enough to meet those thresholds, with one estimate suggesting that just under 20% of batteries will be made in the EU by 2027.
The dispute has direct political and economic importance for both sides of the Channel. The European Commission has said discussions can take place within the framework of ongoing EU-UK negotiations, while car manufacturers argue that tariffs would be self-defeating at a time when Governments are seeking to increase electric vehicle take-up and protect domestic manufacturing.