EV trade between EU and UK threatened with tariffs – because of China

The import of electric cars and components from China also affects a Brexit deal between the EU and the UK. The problem: Under a post-Brexit agreement between the EU and the UK, a 10 percent tariff will be imposed on all EVs traded between the two sides starting January if less than 45 percent of their value comes from the EU and the UK. That’s hard to achieve for the auto industry, which currently sources most EV batteries – typically about 40 percent of the vehicle’s value – from Asia, according to Bloomberg. As a result, the industry is putting pressure on Brussels to extend the deadline by three years.