According to a proposal by the EU Commission at the beginning of December, Brexit car tariffs are to be postponed for a further three years. The current rules of origin for electric vehicles and batteries were designed in 2020 as part of the trade and cooperation agreement between the UK and the EU.

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EU and UK benefit equally

One reason for the postponement is that there is not yet sufficient battery production in the EU. Tariffs would have made it difficult for EU producers of e-cars to obtain the necessary batteries from the UK. However, the UK also benefits from the postponement. Concerns about no longer being competitive on the EU export market due to the tariffs are therefore unfounded. Last but not least, the tariff exemption also benefits German car manufacturers, for whom the UK is an important market. However, new tariffs will certainly be introduced in 2027.

Sources: DIHK, Tagesschau (German)