European Commission seeks views on delaying 10% tariff on UK-made electric vehicles

The European Commission is considering postponing the imposition of a 10% import tariff on British-made electric vehicles and is consulting the automotive industry on the proposal. Under the rules of origin implemented by the EU after Brexit, if the UK or EU content in a vehicle's value is less than 55%, a 10% tariff applies when exporting to the EU; the local content ratio for battery cells and modules must reach at least 65%, and for battery packs the ratio must reach 70%. In 2023, the EU agreed to postpone the implementation of the above rules of origin for three years. If the extension is not renewed, the relevant tariffs will officially take effect in January 2027, at which point approximately 70% of battery electric vehicles and plug-in hybrid electric vehicles exported from the UK to the EU will face a 10% import tariff. The Society of Motor Manufacturers and Traders (SMMT) warned in June 2026 that if a long-term solution on EU rules of origin cannot be reached, electric vehicle manufacturers may need to pay a total of £1.4 billion (approximately $1.86 billion) in tariffs. In response to the above reports, the European Commission and the UK Department for Business, Innovation and Trade have not immediately responded to requests for comment.