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Brussels has been urged to delay Brexit trade rules to save the car industry and prevent hundreds of job losses.<\/p>\n
The EU is being encouraged to extend zero-tariff trade rules on electric cars to prevent costs from spiralling.<\/p>\n
If zero-tariff rules aren\u2019t continued, new tariffs could lead to an extra \u00a33.6billion in costs and reduce the production of 480,000 electric cars for European car manufacturers.<\/p>\n
The trade deal agreed in 2020 included a phased tariff clause which excluded electric cars from tariffs until 2024.<\/p>\n
However, the car industry is behind on battery targets and is asking for more time to increase its battery production.<\/p>\n
READ MORE <\/strong> Brexit Britain is conquering the US\u2013 and it proves Joe Biden and Remainers wrong[LATEST] <\/strong><\/p>\n Unless the European Commission changes its mind, from January 1, 2024, all electric cars which are less than 45 percent built in the UK or EU will have a 10 percent tariff.<\/p>\n This extra cost will have a dramatic impact on customers who could see the price of a new electric vehicle rise significantly to make up for the tariff.<\/p>\n As a result, manufacturers from both the UK and EU are calling for the new rules to be pushed back to 2027.<\/p>\n In a statement, the chief executive of Renault and president of the European Automobile Manufacturer\u2019s Association (ACEA) Luca de Meo said: \u201cDriving up consumer prices of European electric vehicles at the very time when we need to fight for market share in the face of fierce international competition is not the right move.\u201d<\/p>\n Mr de Meo added: \u201cWe will effectively be handing a chunk of the market to global manufacturers. Europe should be supporting its industry in the net-zero transition as other regions do \u2014 not hindering it.\u201d<\/p>\n In response, the Times reported that a European Commission official said: \u201cThis is a treaty that was negotiated over a long period and it is politically sensitive. Changing this treaty is not a straightforward ask.\u201d<\/p>\n Speaking to the publication, Joel Reland suggested that for the Commission, trade with the UK may not be a top priority issue.<\/p>\n He explained: \u201c[N]et zero transition and China\u2019s dominance of green technology are top-priority issues for the rest of the decade. Trade with the UK is not.\u201d<\/p>\n We use your sign-up to provide content in ways you’ve consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. More info<\/p>\n![](\"https:\/\/cdn.images.express.co.uk\/img\/dynamic\/139\/590x\/secondary\/Manufacturers-4978315.jpg?r=1695713029774\")
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