Brexit's Impact on Electric Car Prices

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【Summary】Brexit may add thousands of pounds to the cost of electric cars due to potential tariffs. The UK government wants to suspend the tariffs, but Brussels has resisted. Even European car companies are urging Brussels to soften the blow. There is hope that more EU member states will shift to the British position, but if a deal is reached, voters may not notice or appreciate the cancellation of tariffs. The article criticizes the lack of a clear vision beyond averting disaster.

FutureCar Staff Aug 27, 2023 11:18 PM PT

Brexit is an ongoing issue that may never truly be resolved. The question of how to manage Britain's relationship with its European neighbors remains a contentious topic.

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 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, is seeking to suspend these 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 easy to blame the UK for the problems surrounding Brexit, in this case, there is a strong argument that EU authorities are being unreasonably stubborn. Even European car companies are urging Brussels to soften the blow of these tariffs.

There is some hope for a resolution, as ministers believe more EU member states are aligning with the British position. A potential deal may be within reach.

If Mr. Sunak is able to secure a win in this matter, it would be much-needed good news for him, as he faces ongoing political challenges. However, the problem lies in the fact that voters may not even notice the cancellation of the tariffs, as they would not have experienced the negative consequences of their implementation.

This situation is not unique. The Prime Minister's main objectives seem to revolve around avoiding disaster, whether it be in the economy, the NHS, or migration. A vision that only promises things won't get worse may not be particularly appealing.