EU set to delay 10% tariff on electric cars from UK

Brussels is consulting the industry on proposals to postpone the 10% levy that would apply to most electric vehicles from January 1, the FT ​reported.

Reuters could not immediately verify the report.

The post-Brexit agreement ​between the EU and the UK says that to qualify ⁠for zero tariffs, at least 55% of the value of ​EVs needs to be from the European Union or Britain, with ​values of 65% for battery cells and modules and 70% for battery packs.

Import tariffs of 10% apply for EVs falling short of those requirements, but ​the EU in late 2023 proposed a three-year delay to the ​tightened rules.

After that delay the post-Brexit rules triggering a 10% tariff on 70% ‌of ⁠battery electric and plug-in hybrid models traded with the EU were due to take effect from January 2027.

Britain's main car lobby, the Society of Motor Manufacturers and Traders, warned in June that electric ​vehicle makers would ​have to ⁠pay £1.4 billion ($1.86 billion) in tariffs if there was no solution on local content requirements.

Britain and the ​EU are each other's largest export market for EVs, with ​targets ⁠in both Brussels and London to phase out combustion engine models in the 2030s.

The European Commission and the British Department for Business, ⁠Innovation, Science ​and Trade did not immediately respond ​to Reuters requests for comments sent outside of regular business hours.