EU, UK extend trade rules to avoid tariffs on electric vehicles
(Reuters, 21 Dec 2023) he European Union and Britain on Thursday agreed to give electric vehicle (EV) makers until the end of 2026 to comply with local content rules, delaying the imposition of tariffs on EVs traded with the UK.
The extension from the previous 2024 deadline would save manufacturers and consumers up to 4.3 billion pounds ($5.45 billion) in additional costs, the British government said.
Britain and the EU are each other's largest market for exports of EVs, which are being encouraged as an alternative to carbon-emitting internal combustion engine vehicles powered by gasoline or diesel.
The timeline extension was proposed earlier this month by the EU. The proposal was then put forward to the EU Council which gave its formal approval on Thursday.
"We have been listening to concerns of the sector throughout this process, and I know this breakthrough will come as a huge relief to the industry," British Prime Minister Rishi Sunak said in a statement.
"We are also leaving no stone unturned to bolster our domestic battery industry and deliver long term certainty for our thriving automotive sector to help them grow their roots in the UK."