EU approves delay to stricter post-Brexit rules for electric cars

European Union countries have agreed to delay the application of stricter post-Brexit rules for trade in electric cars. Among other things, this means that tariffs on electric cars traded between Britain and the EU will not be introduced before the beginning of 2027. The Council of the EU, which represents the member states, announced this today.

EU countries approved the European Commission’s proposal to keep the current, less stringent requirements in place for another three years, until the end of 2026. They were originally due to be replaced by stricter rules at the beginning of next year.

The approved measure is intended to prevent 10% tariffs from taking effect on electric cars shipped across the English Channel after Britain’s departure from the EU and destined for sale in the United Kingdom. The automotive industry has previously voiced concerns about the economic impact of this measure. The rules, based on the free trade agreement concluded after Britain left the EU, provided for tariffs on electric cars containing too high a proportion of components made outside Europe.

„The sector should be able to adapt to the requirement for higher local content by 2027, as expected, by expanding battery production for electric cars during this period,“ the Council of the EU said today.

Brussels justified the postponement of the stricter rules in part by noting that when the introduction of tariffs was discussed in 2020, it was not possible to foresee the war in Ukraine or the Covid-19 pandemic. These factors have slowed the development of Europe’s battery industry compared with expectations.

British carmakers fear that the tariffs would make them uncompetitive in the EU market from next year, even though it is very important for their exports. If the tariffs were not postponed, German carmakers would also be affected in the future.