The EU is formulating a plan to delay tariffs on electric vehicle (EV) sales between the UK and the bloc by one year, aiming to alleviate tensions over the upcoming regulations set to take effect in January.
According to Maroš Šefčovič, Vice President of the European Commission, Brussels intends to interpret the "made in Europe" rules quite flexibly in 2024. This approach would grant car manufacturers additional time to transition their battery sourcing from Asia to Europe.
As per the Trade and Cooperation Agreement (TCA) established after Brexit, a 10% tariff will be imposed on EVs transported across the English Channel if their batteries are primarily manufactured outside Europe or the UK. London has proposed a straightforward three-year postponement of these changes.
Šefčovič clarified that the Commission aims to redefine the criteria for what qualifies as European under the rules of origin.