Does the Brexit trade agreement put the export of electric vehicles from the EU to the UK at risk?
EU trade accord puts at danger UK imports of electric vehicles
If the agreement isn’t changed, the EU industry might incur expenses of more than $3 billion, according to sector leaders. Unless the Brexit trade agreement is modified, the EU’s annual €30 billion exports of electric vehicles to the UK are in jeopardy, according to industry leaders in Brussels.
Three of the largest automakers in the world have already urged the British government to begin discussions on new regulations that would impose 10% tariffs on exports to the EU if 45% of the value of an electric vehicle did not originate in the EU or the UK. The danger to companies shipping in the other way has now been estimated by the European Automobile Manufacturers’ Association (ACEA), which claims it may cost the EU sector more than €3 billion.
Electric car exports from ACEA members to the UK were valued at roughly €4.3 billion in 2022, but the market is expected to soar because to improved supply chains and a shift away from combustion engines. 75% of the EU’s automotive market is represented by ACEA.
By 2026, overall sales could reach between €25 and €30 billion, according to Jonathan O’Riordan, director of foreign trade at ACEA. A 10% tariff would result in expenses of up to €3 billion that would be passed on to consumers, borne by the sector, or a combination of both, he said.
It would imply that electric cars from the EU, which are now widely regarded as being outrageously costly, will cost significantly more the following year. The EU established the rule of origin to support the budding market for electric vehicles.According to ACEA, China continues to control the supply of chemicals, which account for up to 45% of the price of an electric car.
