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The Extension of EU & UK Trade Rules on Electric Vehicles

27th December 2023

The UK Government has recently finalised an agreement with the EU to extend trade regulations on electric vehicles (EVs) until the end of 2026.

This agreement will postpone the ‘rules of origin’ requirements and the implementation of 10% tariffs on EVs, which according to the UK government can save car manufacturers and consumers up to £4.3 billion in additional costs over the next three years.

The Trade and Cooperation Agreement (TCA) between the UK and EU included a provision that temporarily exempted EVs from the requirement that products must be mostly manufactured in either Britain or the bloc to qualify for zero tariffs and quotas. This exemption was put in place because EV batteries are primarily imported from Asia.

These tariff exemptions were agreed upon as part of the Brexit deal, but they were set to expire on January 1, 2024.