Brexit's impact on electric cars

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【Summary】Brexit threatens to add thousands of pounds to the cost of electric cars due to the possibility of tariffs. The UK government wants to suspend the tariffs to encourage the development of a car battery industry, but Brussels has resisted. European car companies are also urging Brussels to soften the blow. There is optimism that a deal may be in sight, which would be good news for Rishi Sunak's government. However, if the tariffs are cancelled, voters may not notice or appreciate the outcome.

FutureCar Staff Aug 30, 2023 4:31 PM 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 remains a thorny one.

One major obstacle currently is the potential for tariffs on electric cars. If the UK and EU cannot reach an agreement, tariffs of 10 percent will be imposed on electric vehicles crossing between the continent and Britain. This will significantly increase the cost of these cars, potentially by thousands of pounds 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 resisted this proposal so far.

While it is tempting to blame the UK for all the problems 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 soften the blow 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 political challenges.

The problem, however, is that if a win is achieved and the tariffs are avoided, voters may not even notice. Since they would not have experienced the negative consequences of the tariffs, they may not appreciate that they were canceled.

This pattern seems to repeat itself. The Prime Minister's main goals revolve around avoiding disaster, whether it is related to the economy, the NHS, or migration. But a vision that only promises that "things won't get worse" may not be very appealing.