"UK Car Makers Face £1.4 Billion Tariff Hit if EU Trade Deal Fails A major trade standoff between the UK and EU is looming, with British electric vehicle (EV) manufacturers facing a crippling £1.4 billion ($1.85 billion) tariff bill if a solution is not found to resolve disagreements over local content requirements. The Society of Motor Manufacturers and Traders (SMMT) has issued a stark warning, highlighting the risks of a no-deal scenario that could severely impact the UK's growing EV sector. The industry has been pressing for clarity on the rules of origin, which dictate the proportion of components that must be sourced locally, in order to avoid tariffs that could make British-made EVs uncompetitive in the EU market. As trade talks between the UK and EU continue, the clock is ticking to find a solution that will avoid this devastating blow to the UK's automotive industry."
The SMMT says British EV makers will have to pay £1.4 billion ($1.85 billion) in tariffs if there is no solution on local content requirements with the EU.
