The government will push for tariff-free access for cars to the EU market post-Brexit, business secretary Sajid Javid told the Society of Motor Manufacturers and Traders (SMMT) International Automotive Summit today.
Getting access to the EU market without cost barriers is one of the key objectives of the UK car industry in the next two years of trade negotiations that will create the post-Brexit business environment.
Tariff-free access will ensure that UK-built cars don’t suffer a cost penalty. But with tariffs working both ways, the UK would be expected to introduce a similar 10% tariff on EU-built imports into the UK.
“Top of my list is getting the tariff-free access to the EU market that the car industry needs,” Javid told a packed audience in London.
The car industry fears that the EU will lumber cars built in the UK with a 10% tax that will push up costs. Components and parts, such as finished engines, many of which are built in the UK, might attract a 5% tariff.