The UK and EU appear to be moving towards an understanding that could defer the application of post-Brexit tariffs on electric vehicles (EVs).
Just recently, the EU proposed to the UK government a plan to prolong the phased introduction of tariffs on trade between the UK and the European Union by approximately two years. The discussions are continuing and people familiar with them have provided the information.
In terms of such arrangements that have emerged since the UK’s withdrawal from the EU, next year will witness a tariff of 10% imposed on electric vehicles traded between the two sides if not more than 45% of their value emanates from it This imposition of tariffs has caused anxiety to European automakers; they estimate to lose $4.5 billion and some competitive advantage to Chinese rivals.
Sources are also proposing a solution whereby there is a delay on the tariffs for up to two years. As it would be noted, the debates are still ongoing, with no decision made yet. They may be continued for so long.
Recently, electric vehicles have become a burning issue in global trade clashes, with European automakers being concerned about losing their share to Chinese manufacturers during the transition to cleaner vehicles. The EU started a probe into China’s financial assistance to EV companies in early August.
A three-year extension has been supported by several EU Member States, including the UK Government and the car manufacturers of Europe. But in France, there is opposition to this delay.