EU plans to delay 10% tariffs on UK electric vehicles

The European Union is preparing to postpone the introduction of 10% import tariffs on electric vehicles manufactured in the United Kingdom, which were originally scheduled to take effect on January 1, 2027. According to reports from the Financial Times, Brussels is currently in consultations with the automotive industry regarding this delay, as the measure threatens to disrupt trade for a significant portion of the sector.

The trade agreement established after Brexit requires that at least 55% of the value of an electric vehicle must originate from the EU or the UK to qualify for duty-free status. Higher thresholds are also mandated for battery components, including 65% for cells and 70% for battery packs. Failing to meet these rules would subject approximately 70% of all electric and plug-in hybrid models traded between the two regions to the 10% tariff. The British Society of Motor Manufacturers and Traders (SMMT) has previously warned that these strict rules would cause severe economic damage to the industry.

While the EU had already granted a previous three-year delay on these requirements in late 2023, the current proposal aims to prevent a market crisis as the deadline approaches. Authorities are now evaluating the potential impact of further extending this period to ensure the stability of the automotive market.