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UK car lobby group warns of £1.4 billion hit from post-Brexit rules
The SMMT said 70% of battery electric and plug-in hybrid models traded with the EU could face a 10% tariff without a local-content deal.
- The Society of Motor Manufacturers and Traders estimated on Tuesday that British electric vehicle makers could face £1.4 billion in tariffs starting in January, as post-Brexit rules trigger a 10% tariff on 70% of battery-electric and plug-in hybrid models traded with the European Union.
- Brussels unveiled the Industrial Accelerator Act in March, tying public funding access to minimum thresholds for EU-made parts, a proposal risking exclusion of UK-assembled vehicles from essential European markets.
- European carmakers including BMW, Mercedes, and Stellantis formally requested on July 1 that British-made components qualify as "made in Europe," with ACEA arguing for "important tweaks" to prevent supply chain disruption.
- SMMT CEO Mike Hawes warned that additional trade costs would make models less competitive and less affordable, stating, "It's not just a UK problem- it will damage the UK and will also damage Europe itself."
- Amid political uncertainty following Prime Minister Keir Starmer's resignation, it remains unclear if successor Andy Burnham will maintain his approach to EU relations, while the interdependent trade between the two regions is valued at £16.4 billion.
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UK car lobby group warns of £1.4 billion hit from post-Brexit rules
British electric vehicle makers will have to pay £1.4 billion ($1.85 billion) in tariffs if there is no solution on local content requirements with the European Union, the country's main car lobby group estimated on Tuesday.
·New York, United States
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Total News Sources9
Leaning Left0Leaning Right2Center4Last UpdatedBias Distribution67% Center
Bias Distribution
- 67% of the sources are Center
67% Center
C 67%
R 33%
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