The clock is ticking on the threat of swingeing new tariffs on British built electric cars sold in the European Union and their EU built rivals sold in the UK, as the implementation date for tough new Rules of Origin requirements looms.
A deal agreed between the UK and EU as part of the Brexit negotiations means that from January next year EVs traded across the channel must have 45 per cent ‘local content’ from either market, while their batteries must have between 50 and 60 per cent local content.
The rules were agreed before the Covid pandemic and before Russia’s war on Ukraine, and the ensuing supply chain shortages have helped to make meeting the rules of origin targets on batteries impossible for EVs currently built in either the UK or Europe, the car industry says.
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