Key facts
- The Brexit deal set a 10% tariff on electric cars whose batteries do not meet local content rules.
- The European Commission's proposals would delay the rules of origin by a year, not the two years the UK industry wants.
- The European Automobile Manufacturers Association estimated 82% of EU electric car and van exports to the UK would face the 10% duty in 2027.
- The lobby group put the added cost at €1.47bn next year alone.
- An EU-UK summit is planned for next week, with subsidy access and Chinese car tariffs also on the agenda.
The UK car industry is preparing to push for a two-year delay to post-Brexit tariffs on electric cars traded with the EU, after an initial European proposal suggested a shorter delay, the Guardian reported on November 12, 2026.
Tariffs are due to apply from January 1 to most electric cars traded between the EU and UK unless the two sides agree to delay the rules of origin on batteries for a second time. The Brexit deal, agreed on Christmas Eve in 2020, required British and European electric cars to use batteries made in either the UK or the EU with local materials, or face 10% tariffs.
The rules were initially due to take effect on January 1, 2024, and the EU and UK agreed to extend the deadline in December 2023. Carmakers remain largely reliant on battery imports from China, Japan and South Korea.
The European Commission has shared proposals with the automotive industry to delay the start of the tariffs, although they have not been formally shared with the UK government. The proposals are understood to equate to a one-year delay, with some parts adjusting customs procedures and origin calculation methods.
One UK executive said: "The industry will be really clear – two years minimum or we have the same discussion next year." Another person said talks would focus on the technical details rather than a set time delay.
The European Automobile Manufacturers Association estimated that 82% of EU electric car and van exports to the UK would face the 10% duty in 2027, adding €1.47bn in costs next year alone. The EU and UK are also negotiating whether Britain can join "Made in Europe" subsidies and whether the UK should match EU tariffs on Chinese car imports, with an EU-UK summit planned for next week.