European carmakers are urging the EU and UK to delay a post-Brexit rule change that would impose 10% tariffs on most electric vehicles traded between the continent and Britain from January 1. The European Automobile Manufacturers Association (ACEA) warned the stricter “rules of origin” would cost the industry €1.5bn annually and weaken competitiveness against China. In a letter to the European Commission, ACEA president Ola Källenius and director-general Sigrid de Vries proposed phasing in the requirements over five years, postponing battery pack assembly rules until 2030 and cathode material rules until 2032.

About 82% of the 520,000 EV passenger cars and vans EU producers expect to sell in the UK in 2027, worth €17.9bn, would breach the rules and face tariffs. The UK industry shares the concern, with SMMT chief Mike Hawes calling for a balanced long-term solution. Brussels and London had already postponed tougher requirements from 2024 to 2027, but slower EV uptake and the collapse of Northvolt have delayed battery supply chains.

A UK government spokesperson said it is working with carmakers, while the European Commission declined to comment.