Proposals to delay post-Brexit EV tariffs set to be approved

The European Commission is set to delay post-Brexit EV tariffs, which is due to come into force in January.

The proposal to delay the tariffs by three years will go before the full cabinet of European commissioners today, where it is expected to be approved.

The UK-EU Trade and Cooperation Agreement (TCA) temporarily exempted electric vehicles (EVs) from the rules that said products must be substantially made in Britain or the bloc to qualify for the EU’s zero tariff, zero quota regime, because EV batteries are predominantly imported from Asia. The only way to avoid these duties would be to source all battery parts and some critical battery material in the EU/UK, which manufacturers say is practically impossible to achieve today.

Jon Lawes, Managing Director at Novuna Vehicle Solutions and MHC Mobility, comments on the reported European Commission proposal to delay incoming EV tariffs: “If approved this breakthrough is a lifeline for the UK and European motor industry. The Rules of Origin tariffs have cast a long shadow over the switch to EVs in the UK and Europe. With UK EV registrations declining in November, the rules threatened to further hit vehicle production costs and dampen EV adoption.   
 
“With the New Year’s cliff edge averted, the industry and policymakers on both sides of the Channel need to focus on scaling up domestic battery capacity and tackling the persistent charging infrastructure deficit to create a sustainable, competitive market for EVs.”