The European Union’s proposed Industrial Adjustment and Resilience (IAA) plan could force electric vehicle manufacturers to source at least 70 percent of components from within the bloc, raising concerns among British automakers. Exclusion from the "Made in EU" designation risks disrupting an €80 billion trade partnership, as UK producers fear losing access to critical supply chains and market stability. The move highlights growing tensions over industrial policy and supply chain dependencies in the transition to electric vehicles. Industry leaders warn that such restrictions could escalate trade barriers and strain cross-border collaboration.
The EU's IAA would mandate 70 percent EU-made components in EVs, with UK automakers warning that exclusion from "Made in EU" status would threaten an €80 billion trade relationship.