British Prime Minister Rishi Sunak announced a breakthrough in the ongoing discussions with the European Union regarding the postponement of post-Brexit tariffs on electric vehicle (EV) sales. The European Commission, reversing its initial stance, recently approved a one-time extension until the end of 2026 for the planned 10-percent tariffs. The decision, influenced by concerns raised by the UK and EU automotive industries about potential increased costs, set the stage for Thursday's agreement. The deal involves a more gradual implementation of \"rules of origin\" regulations and associated tariffs. In a statement, Sunak acknowledged the industry's concerns, expressing relief for stakeholders. The prime minister emphasized that the delayed tariffs would help \"keep costs down for businesses and for people at home who want to make the switch to electric vehicles.\" Attributed to disruptions in the global supply chain caused by the pandemic and the conflict in Ukraine, the need for the tariff delay became apparent. The UK officially left the EU in January 2020, finalizing a post-Brexit free-trade agreement during the subsequent transition period, effective in 2021. As per the agreement, tariffs were originally scheduled to commence on January 1, 2024, for vehicles lacking at least 45 percent UK- or EU-made content, along with batteries sourced at least 50-60 percent from these regions. The anticipated delay is anticipated to result in savings of up to 4.3 billion ($5.5 billion) for both car manufacturers and consumers, according to Sunak's office. Sigrid de Vries, the director-general of the European Automobile Manufacturers' Association (ACEA), welcomed the decision, stating that it provides \"much-needed certainty\" to the EV battery supply chain. She emphasized that the move recognizes the time required to develop emerging value chains and signals the EU's commitment to maintaining the competitiveness of critical industries. Mike Hawes, chief executive of the UK's Society of Motor Manufacturers and Traders (SMMT), lauded the agreement as a \"win for motorists, the economy, and the environment.\" He highlighted that maintaining tariff-free trade in EVs ensures consumers have a broad and affordable choice of models during a crucial period for encouraging the transition to electric vehicles.<\/p>\n
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UK and EU Reach Accord on Post-Brexit Electric Car Tariff Postponement - IndiaTimes<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" British Prime Minister Rishi Sunak announced a breakthrough in the ongoing discussions with the European Union regarding the postponement of post-Brexit tariffs on electric vehicle (EV) sales. The European Commission, reversing its initial stance, recently approved a one-time extension until the end of 2026 for the planned 10-percent tariffs. The decision, influenced by concerns raised by the UK and EU automotive industries about potential increased costs, set the stage for Thursday's agreement Continue reading