Brexit Regulations Threaten £1.4 Billion in Tariffs for UK Electric Vehicle Trade

British electric vehicle companies face potential tariffs of £1.4 billion due to new Brexit regulations on local content requirements. The Society of Motor Manufacturers and Traders warns that this could make many vehicles less competitive. The change comes amid political uncertainty following Prime Minister Keir Starmer's resignation.

British electric vehicle manufacturers could face £1.4 billion in tariffs if local content requirements with the European Union are not resolved, according to the nation's main car lobby group, the Society of Motor Manufacturers and Traders (SMMT).

The post-Brexit rules, delayed once in 2023, come into effect in January and will impose a 10% tariff on 70% of electric and plug-in hybrid models traded with the EU. This has raised concerns over the competitiveness of these vehicles, amidst ongoing political changes following Prime Minister Keir Starmer's resignation.

The SMMT calls for a joint solution, emphasizing the importance of the UK-European market for electric vehicles, as both regions aim to phase out combustion engines by the 2030s. The group warns that proposed European Commission regulations could further hinder UK vehicle exports.