Responding to proposals from the European Commission that tariffs on electric vehicles traded between the UK and EU will be delayed for three years, William Bain, Head of Trade Policy at the BCC, said:

“Today’s decision will be a huge relief to car and battery makers and consumers across Europe. With economic growth low across the UK and EU, it would have been counter-productive to introduce 10% tariffs on electric vehicle imports from each other’s markets. The three year status quo period is welcome, but the issue for industry, and policymakers in the UK and EU, is what happens in 2027? 

“Will we see sufficient investment in European battery production by that stage to allow the change to rules of origin to be implemented then? If not, and the issues of battery supply and origin remain unchanged, what further measures will be taken to retain the competitiveness of European car-making, which includes the UK?”