UK and EU agree EV trade rules to keep costs down for manufacturers and consumers

The UK government and European Union have agreed to extend trade rules on electric vehicles to the end of 2026, saving manufacturers and consumers up to £4.3 billion in additional costs.

The rules of origins were set to come into effect from 1 January 2024, following Brexit. They would have seen a 10% tariff on sales of EVs between the EU and the UK.

Earlier this month, Stellantis, which is responsible for 14 brands including Vauxhall and Jeep, warned it might have to close operations in Britain with the loss of thousands of jobs if the tariff came into force in January.


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Prime minister Rishi Sunak said the government has been “listening to the concerns” of the car manufacturing sector throughout negotiations and knows the “breakthrough will come as a huge relief to the industry”.

“The UK government is delivering a pragmatic solution to keep costs down for businesses and for people at home who want to make the switch to EVs.

“We are also leaving no stone unturned to bolster our domestic battery industry and deliver long term certainty for our thriving automotive sector to help them grow their roots in the UK,” Sunak added.

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