In a letter addressed to Ursula von der Leyen, the Commission’s President, Europe’s largest auto lobby group has redoubled its efforts to get the European Union not to impose tariffs on new electric vehicles after Brexit.
The European Automobile Manufacturers’ Association, which includes Volkswagen, BMW, and Renault, wrote that the European Commission had taken “no actions” to extend the phasing in of tariffs for EVs between the EU and the UK. These tariffs are due to come into effect in January.
In a letter received, Luca de Meo and Sigrid deVries, ACEA Director General and Renault SA CEO, wrote that the situation was becoming more urgent. “A large number of member states have expressed their willingness to support our stance.”
In accordance with current agreements, EVs sold between the EU and UK in the future will be subject to a tariff of 10% if less that 45% comes from the EU. The lobby group claimed that 90% of EVs exported to the UK will be affected by the additional duty. This could cost the industry €4.3 billion ($4.6billion) and benefit Chinese competitors.
Germany and many other EU members support the UK government’s push to extend tariff phase-in by three years. This month, it was reported that this possibility is still on the table. France has opposed any delay.
The letter stated that “ACEA is only asking for short-term flexibilities in the rules.” “We don’t contest that the rules will become more strict in time, it is just a matter of timing,” and a 3-year delay would be “the most appropriate solution.”
In recent weeks, electric vehicles have been at the forefront of trade tensions around the world as Europe fears that Chinese automakers will gain an advantage in their transition to cleaner cars. Last month , the EU began an investigation into Beijing’s financial assistance for the EV sector.