EU and UK float delay for 10% EV tariffs set for 2027

Brussels and London are talking about pushing back the 10% tariffs on electric vehicles that are due to land on January 1, 2027. According to the Financial Times, the European Commission is consulting the car industry about extending the current setup, and the UK supports the move.

The charges flow from the Brexit agreement's rules of origin, in force since 2021. Those rules steadily raise how much European-made content a vehicle needs to cross the EU-UK border duty-free — a lever designed to build up European battery and battery-material production.

That build-up has been slower than hoped. Many EV models still run on battery packs and materials sourced from Asia. ACEA, the European Automobile Manufacturers' Association, estimates around 82% of the 520,000 electric cars and vans slated for sale in 2027 would be hit, worth roughly €17.9 billion.

ACEA wants the requirement to assemble battery packs in Europe pushed to 2030, and the rule on European-made cathode materials pushed to 2032. It argues the extra costs would weaken European manufacturers in the British market, where Chinese brands are gaining share. Per the FT, the Commission is weighing two paths: a flat one-year postponement, or a two-year transition letting manufacturers offset exports of vehicles with non-compliant batteries.

The EU chemical industry is digging in against any delay. Companies have already poured millions of euros into cathode active materials — a key EV battery component — and fear demand for their output will slide. Britain's SMMT is urging both sides to agree on the rules and craft a joint battery-production strategy, and British officials expect serious London-Brussels negotiations to start after the EU-UK summit on November 20.

The two markets are tightly wired together: the EU accounts for 60% of British car exports, while the UK buys 30% of the EU's auto exports and stands as the biggest market for European EVs. Globally, EV sales were up 8% as of the end of October compared with the same point in 2025, with Chinese exports rising, and in early October gasoline and diesel cars — hybrids and other electrified models excluded — fell below 50% of new-car sales worldwide for the first time.