UK car industry says pause in Canada trade talks creates tariff risk

The UK car industry is disappointed by Britain's decision to suspend negotiations with Canada on a new trade deal, its trade body said on Friday, warning that the move creates a risk of tariffs being reintroduced.

"Canada is an important market for UK car exports and, given the close ties between our two countries, the suspension of trade talks is especially disappointing and sends a signal that the UK's world-class automotive products are not welcome in Canada," Mike Hawes, the chief executive of the Society of Motor Manufacturers and Traders, said in a statement.

"If UK car exports can't use EU parts and components to avoid additional duties it creates a risk that tariffs, potentially charged on top of luxury goods taxes, could be reintroduced."