The UK is working with the EU to ‘fix the specific issue’ that means electric cars traded between Britain and the bloc could face 10% tariffs from next year, according to the exports minister.
Under the post-Brexit trade deal, electric vehicles need to have 45% EU or UK content from 2023, with a 50%-60% requirement for their battery cells and packs – or face British or EU import tariffs.
However, it was warned in September that carmakers in both the UK and EU have not built up their electric vehicle supply chains enough to meet those requirements and concern is rising as the new year looms.
Exports minister Malcolm Offord of Garvel said in response to a written question from John Taylor of Warwick that ‘unforeseen shared external shocks’ are to blame.
However, he assured the unaffiliated peer that the UK and EU are working together to resolve the problem.
He said: ‘Due to unforeseen shared external shocks, carmakers across Europe have said they cannot meet the UK-EU Trade & Co-operation Agreement’s rules from 2023 and could face tariffs.
‘This is a shared problem and the government is determined to work with the EU to fix the specific issue faced from 2024.
‘We want to reach a joint solution with the EU, but our priority is to support our automotive sector and we will be considering all scenarios.’
He added: ‘Government continues to support the UK automotive industry through the Automotive Transformation Fund, facilitating the creation of an internationally competitive UK electric vehicle supply chain.’
By Abbie Llewelyn, PA political staff
Press Association: News
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