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 the rules, but Brussels has resisted. EU car companies are also urging Brussels to soften the blow. There is optimism that a deal may be in sight, which would benefit Sunak. However, even if successful, voters may not notice or appreciate the cancellation of tariffs. Brexit is seen as a constant effort to avert disaster rather than improving the situation.

FutureCar Staff Aug 28, 2023 6:22 AM PT

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

One major obstacle currently is the potential for tariffs on electric cars. If the UK and EU fail to reach an agreement, a 10% tariff will be imposed on electric vehicles crossing between the continent and Britain. This would apply to almost all electric cars and could result in thousands of pounds in additional costs per vehicle.

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 Channel. However, Brussels has been resistant to this idea.

While it is often easy to blame the UK for the problems surrounding Brexit, in this case, there is a strong argument that EU authorities are being too stubborn. Even European car companies are urging Brussels to soften the impact of tariffs.

There is some optimism, as ministers believe that more EU member states are starting to align with the UK's position, potentially leading to a deal. This would be positive news for Mr. Sunak, who is facing political challenges.

The problem, however, is that if a win is achieved in this area, voters may not even notice. Since they would not have experienced the consequences of the tariffs, they may not appreciate their cancellation.

This pattern seems to repeat itself. The Prime Minister's main goals revolve around avoiding disaster in various areas such as the economy, the NHS, and migration. However, a vision that only promises that "things won't get worse" may not be particularly appealing.