Brexit's impact on electric car prices

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【Summary】Brexit could increase the cost of electric cars by thousands of pounds due to potential tariffs. Rishi Sunak's government wants to suspend these rules to encourage the car battery industry, but the EU has resisted. Despite European car companies urging Brussels to soften the blow, there is hope that more EU member states are shifting to the UK's position. However, if a deal is reached, voters may not notice the impact, leading to minimal political gain for Sunak.

FutureCar Staff Aug 30, 2023 9:36 AM PT

Brexit is an ongoing issue that may never be fully resolved. The question of how Britain should manage its relationship with its European neighbors continues to be a challenge.

One major obstacle currently is the potential imposition of tariffs on electric cars. If the UK and EU fail to reach an agreement, a 10% tariff on electric vehicles crossing between the continent and Britain will come into effect. This would apply to almost all electric cars and result in significant additional costs, amounting to thousands of pounds per car.

The UK government, led by Rishi Sunak, wants to suspend these impending rules in order to support the development of a car battery industry on both sides of the English Channel. However, Brussels has been resistant to this proposal.

While it is tempting to place blame solely on the UK for the problems associated with Brexit, in this case, there is a strong argument that EU authorities are being too stubborn. Even European car companies are urging Brussels to lessen the impact of these tariffs.

There are reasons for optimism, as some ministers believe that more EU member states are aligning with the British position, potentially leading to a deal. This would be welcome news for Mr. Sunak, who is facing ongoing political challenges.

The problem, however, is that if a win is achieved in this particular issue, voters may not even notice. Since they would not have experienced the consequences of the tariffs being implemented, they may not appreciate that they were ultimately canceled.

This pattern seems to be recurring. The Prime Minister's main objectives revolve around avoiding disasters in areas such as the economy, the NHS, and migration. Yet, a vision that merely promises that "things won't get worse" may not be particularly appealing.