European Commission To Delay EV Tariffs By Years

The European Commission will recommend a three-year delay for EV tariffs traded with the UK, Bloomberg sources suggested on Tuesday.

Starting in 2024, the current Brexit deal calls for EVs transported between the UK and EU to be slapped with a 10% tariff if less than 45 percent of the EV’s value comes from the region—or if less than 50 percent-60 percent of the battery cells and packs come from the EU or UK.

Naturally, EV makers were quick to show their displeasure with the deal and sought a delay until 2027. The UK and most EU member states have also pushed for a delay.

The EU capitals will need to approve any delay, along with the British government.

In October, The Society of Motor Manufacturers and Traders said that the tariffs would hike the cost of an average British-made electric vehicle sold in Europe by more than $4,500, “undermining” the industrial competitiveness of the UK. The group immediately called for a three-year delay—a request that seems to soon be granted despite the European Commission originally standing by the deal, saying it was “fit for purpose” and that it wasn’t contemplating a change. The automaker lobby warned that the policy could cost the sector nearly $5 billion over the next three years

The policy was designed to encourage the development of a European battery supply chain, but local battery cell supplies are not yet geared up.

France was one of the member states not in favor of the three-year delay, arguing that the post-Brexit trade deal shouldn’t be reopened, and that European battery cell production would shortly be able to meet demands from the UK.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:

• Oil Prices Stabilize After a String of Losses
• Global Emissions Are Set for Another Record This Year
• Insurance Risk Premium Increases After Houthi Strikes On Ships