ALBAWABA – British and European Union officials will meet today, Wednesday, to discuss post-Brexit EV tariffs, as the deadline for post-Brexit EV tariffs approaches, Bloomberg reported Wednesday.
In order to be phased in as part of the trade between the United Kingdom and the EU, the Electric Vehicles’ rules of origin must be agreed on before the end of the year.
According to Automotive News Europe, under the EU-UK post-Brexit trade deal, EVs need to have 45 percent EU or UK content, as of 2024. More so, they need to meet a 50 percent-60 percent requirement for their battery cells and packs. Otherwise, they face British or EU import tariffs of 10 percent.
These post-Brexit EV tariffs have become a key area of contention in the ongoing relationship between the UK and EU. But they are on the agenda for a half-day meeting of the UK-EU Trade Specialised Committee, as reported by Bloomberg.
Tesla will also be affected as the deadline for post-Brexit EV tariffs approaches - Shutterstock
Industry specialists told Bloomberg the tariffs could cost the sector 4.3 billion euros ($4.6 billion) and will surely benefit Chinese competitors.
“Representation has been made and continues to be made because we know the deadline is coming up but I am optimistic that the right decision will be taken,” UK Industry Minister Nus Ghani said in an interview with Bloomberg late Monday.
UK Prime Minister Rishi Sunak and European carmakers want to extend the planned phase-in period by three years, allowing more time for the region’s battery supply chain to develop. Especially since the supply chain has been disrupted by the ongoing US-China trade and tech war, with the Chinese also escalating bans on the export of essential minerals and resources for the EV battery sector.
Sunak has enrolled German Chancellor Olaf Scholz to help delay the tariffs, Bloomberg reported in July. But so far, EU officials and member states have been split over the matter, even after diplomats discussed the issue Monday, an unnamed source told Bloomberg.
