EU Considers Delaying 10% Tariff on UK Electric Vehicles

The European Commission is consulting the automotive industry on proposals to delay a 10% tariff on electric vehicles imported from the United Kingdom. The levy was originally scheduled to take effect on January 1, 2027, targeting vehicles that do not meet post-Brexit local content requirements.

To avoid the tariff, at least 55% of an electric vehicle's value must originate from the EU or UK, with stricter thresholds for battery cells at 65% and battery packs at 70%. The Society of Motor Manufacturers and Traders warned that failing to reach a solution on these requirements could cost manufacturers £1.4bn in tariffs.

Both regions are each other's largest export markets for electric vehicles as they work toward phasing out combustion engine models in the 2030s. The UK Department for Business, Innovation and Trade is managing the trade relations regarding these potential levies.