Electric car exports from the European Union to the UK, worth €30 billion a year, are at risk if the Brexit trade deal is not changed.
The world's three largest car manufacturers have called on the British government to open negotiations on new rules that will impose ten percent tariffs on exports to the EU if 45 percent of the value of an electric vehicle is not from the EU or Great Britain, reports SEEbiz.
The European Automobile Manufacturers Association (ACEA) said the current rules would mean more than three billion euros in additional costs for the EU industry.
ACEA members' exports of electric vehicles to Great Britain are estimated at around 4,3 billion euros last year.
"We would expect total sales to be around €25 billion to €30 billion by 2026," said ACEA's director of international trade, Jonathan O'Riordan.
A ten percent tariff would increase costs to three billion euros, which would be passed on to consumers and absorbed by industry.
This would mean that electric vehicles imported from the EU, which many already consider excessively expensive, will cost even more next year. The EU has introduced a rule of origin to encourage trade in electric cars.
Last month British car giant Stellantis, which is responsible for 14 brands including Vauxhall and Jeep, warned it may have to close its UK operations due to the loss of several thousand jobs if the new rule of origin comes into effect in January.
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