Brexit Tariffs Threaten British Electric Vehicle Market

The British electric vehicle industry faces potential tariffs of £1.4 billion due to unresolved local content requirements with the EU. The Society of Motor Manufacturers and Traders warns this could harm the competitiveness of key models amid political changes following Prime Minister Keir Starmer's resignation.

British electric vehicle manufacturers are at risk of incurring £1.4 billion ($1.85 billion) in tariffs if local content requirements with the European Union remain unresolved, warns the nation's leading automotive lobby group.

Post-Brexit rules on parts sourcing, slated for enforcement in January after a 2023 delay, could impose a 10% tariff on 70% of battery electric and plug-in hybrid models traded with the EU, according to the Society of Motor Manufacturers and Traders (SMMT).

The looming tariff situation coincides with political uncertainty after Prime Minister Keir Starmer's resignation. As potential successor Andy Burnham's stance on EU relations remains unclear, SMMT CEO Mike Hawes emphasized the need for a joint solution to avoid further trade costs.