EU-U.K Urged to Postpone Tariffs on Electric Vehicles to Avoid Price Hike, Says ACEA Lobby Group

Summary: The European Union and Britain need to take urgent action to postpone rules for electric vehicles traded between the bloc and the U.K. that will trigger 10 percent tariffs, In accordance with the latest findings of Europe’s car industry group ACEA. ACEA President and Renault CEO Luca de Meo stated that driving up consumer prices of European electric vehicles at a time of fierce international competition is not the right move.

The EU and the UK must take urgent action to delay the implementation of rules that would impose 10 percent tariffs on electric vehicles traded between them.

ACEA President and Renault CEO Luca de Meo argues that increasing consumer prices of European electric vehicles would harm market share in the face of intense international competition.

Under the EU-U.K. post-Brexit trade deal, electric vehicles must have 45 percent EU or UK content from 2024 or face import tariffs. Automakers in both regions are not prepared to meet these requirements and have called for a postponement until 2027.

Stellantis has warned that its British Vauxhall plants could close and Ford has announced a slowdown in the transition to electric if the Brexit deal is not renegotiated swiftly.

EU-U.K. tariffs ‘not right move,’ ACEA lobby group says

The European Union and Britain need to take urgent action to postpone rules for electric vehicles traded between the bloc and the U.K. that will trigger 10 percent tariffs, In accordance with the latest findings of Europe’s car industry group ACEA. ACEA President and Renault CEO Luca de Meo stated that driving up consumer prices of European electric vehicles at a time of fierce international competition is not the right move.

Challenges in Meeting Requirements

Under the EU-U.K. post-Brexit trade deal, electric vehicles must have 45 percent EU or UK content from 2024, with a higher requirement for battery cells and packs. However, automakers in both Britain and the EU have not built up their EV supply chains sufficiently to meet these requirements. They have called for the rules to be postponed until 2027 to allow for adequate preparation.

Concerns Over Job Losses and Transition to Electric

Stellantis, the parent company of British Vauxhall plants, has warned that these plants could close, leading to the loss of thousands of jobs, if the Brexit deal is not swiftly renegotiated. Ford has also announced a slowdown in the transition to electric vehicles. These developments highlight the potential consequences of the current trade rules and the need for urgent action.

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