Tory Donor Lord Bamford Funds The Reform...
News2 mins ago
Well I never:
https:/
“In four weeks from now Brexiteers are going to be explaining the benefits of a 10% tariff on UK manufactured EVs exported to the EU**. If the UK wants to maintain a car manufacturing business in the UK, we are going to have to subsidise (pay your tax £s) exported EVs at around £4,000 a pop.
There is a move by Germany and France to extend the EV tariff free period, but I don’t see why they should want such a thing – they can sell to the whole of the EU tariff free, with little competition from the UK; with fewer vehicles exported to the UK, a price worth paying.”
But…..
https:/
I must say, I’m astonished. My ghast has not been so flabbered for a long time.
**Of course, what was omitted from that passage was that the tariff would also apply to EVs manufactured in the EU and exported to the UK. I’m sure that was just an oversight.
No best answer has yet been selected by New Judge. Once a best answer has been selected, it will be shown here.
For more on marking an answer as the "Best Answer", please visit our FAQ.I wouldn’t start popping the Champagne corks quite yet if I was a UK EV manufacturer; in relation to the proposed extension, the European Commission said it would add a clause to the Brexit trade deal making it "legally impossible" for the extension to last any longer, this it said, would lock in its rules of origin from 2027.
So in three years’ time (if the proposal is agreed), we will be back where we are today.
So in three years’ time (if the proposal is agreed), we will be back where we are today.
But you warned us it would be effected from Jan 1st 2024 (despite my suggestion that it would not).
The EU says lots of things, but when its key player (Germany) talks, the EU listens. This was done to give Germany a chance to ramp up its battery production capacity because their sales to the UK would also be subject to the tariff. This was something you somewhat overlooked. Something else you failed to mention was that the UK is Germany's third biggest export market (after the USA and China) and it is most unlikley that they would be able to shift the sales lost to the UK by this tariff to the remainder of the EU.
This delay to the tariff introduction was done to give Germany the chance to ramp up its battery production capacity (which the EU is subsidising). The UK will also no doubt ramp up theirs as well. You may recall that "despite Brexit" Nissan has pledged to invest £3bn in ots EV production facilities here. So it is unlikely that we shall be debation the same topic in 2026.