The European Union and the United Kingdom are considering delaying the introduction of tariffs on electric vehicles, the Financial Times reports.
Carmakers have warned that the charges would make them more vulnerable to competition from China.
According to sources, Brussels is consulting industry representatives on proposals to postpone the introduction of a 10 per cent tariff that, from 1 January, was due to apply to most vehicles. Two people familiar with the matter said London supports the move.
The Brexit deal, which came into force in 2021, was intended to encourage the creation of a European battery supply chain. To that end, it provided for a gradual tightening of the requirements for the share of locally produced components in a car needed to qualify for tariff-free treatment.
However, production volumes of chemicals and batteries have not grown as quickly as expected, and many models still use battery packs and chemical components from Asia.
According to ACEA — the lobbying organisation representing EU carmakers — about 82% of the 520,000 electric vehicles (passenger cars and vans) expected to be sold in 2027 (with a total value of about €17.9bn) would be subject to the tariffs.
The organisation has called for the introduction of stricter requirements on assembling battery packs to be delayed until 2030, and for additional requirements on the use of European-made cathode materials in electrodes to be postponed until 2032.