Three of the world’s biggest car manufacturers have already called on the British government to open talks over new rules that will see 10% tariff s put on exports to the EU, if 45% of an electric vehicle by value does not originate in the EU or the UK.
The European Automobile Manufacturers’ Association (ACEA) has now quantified the risk to manufacturers who ship in the other direction, saying it could add more than €3bn in costs to the EU industry.
Exports of ACEA members’ electric vehicles to the UK were valued at about €4.3bn in 2022, but with a recovery in the supply chain and the move away from combustion engines, the market is projected to boom. ACEA represents 75% of the auto industry in the EU.
“We would expect total sales to be around €25bn to €30bn by 2026,” said Jonathan O’Riordan, its international trade director . A tariff of 10% would add costs of up to €3bn passed on to the consumer, absorbed by the industry or a mixture of both, he added.
Electric vehicles imported from the EU, already considered prohibitively expensive by many, would cost even more next year. The EU introduced the rule of origin to help boost the fledgling electric car trade.
This story is from the June 19, 2023 edition of The Guardian.
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This story is from the June 19, 2023 edition of The Guardian.
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