Brussels proposes UK trade rule delay to avoid tariffs on EVs, batteries

Brussels proposes UK trade rule delay to avoid tariffs on EVs, batteries

Brussels proposes UK trade rule delay to avoid tariffs on EVs, batteries 800 532 Energy Storage Journal

December 14, 2023: The European Union has proposed a three-year delay in tightening ‘rules of origin’ due to come into force in 2024 that would entail import tariffs imposed on batteries and EVs from the UK.

The EU said on December 6 the proposed “one-off extension”, until December 31, 2026, follows concerns raised by the European automotive, battery and chemical industries.

If the extension is formally approved by EU member states by the end of this month, it will avoid the imposition of 10% tariffs on the export of European-built battery electric vehicles to the UK

Director general of the European Automobile Manufacturers’ Association, Sigrid de Vries, said the move was vital to ensure the well-being of EU BEV manufacturing, but also of the whole European battery value chain.

“Failure to approve the proposal would result in reduced competitiveness of our exports. It would also have a negative knock-on impact on demand for European batteries and battery materials, based on lost BEV market share to third-country competitors.”

De Vries said a failure to suspend the tariffs could cost €4.3 billion (over the next three years) for EU vehicle makers, potentially reducing BEV production by some 480,000 units, which he said was equivalent to the output of two average-size auto factories.