Currently reading: Confirmed: 10% import tax on new cars from European Union
Government will switch to World Trade Organization rules post-Brexit; tariff could change if deal is struck
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2 mins read
19 May 2020

Cars imported into the UK from European Union (EU) countries will be subject to a 10% import tariff from the start of next year, the UK government has confirmed. 

Revealed by the Department for International Trade as part of its wide-reaching announcement on the country’s post-Brexit trade tariffs, the default to World Trade Organization (WTO) terms means cars built in the EU will be subject to the same tariff rate as cars from elsewhere in the world. 

Currently, there's zero import levy applied to EU-built cars. The 10% levy will apply unless the UK is able to strike a trade deal with the EU by the end of this year. 

The UK government sees tariffs on sectors such as the automotive industry as essential to “help support businesses in every region and nation in the UK to thrive”, including manufacturing. Jaguar Land Rover is one company that could benefit as prices of its dominant premium opposition from Germany are hiked up. 

It's unlikely that EU-based manufacturers will be able to absorb the additional cost, meaning it will be passed on to consumers in most cases. Porsche, for example, confirmed last year that its customers would have to pay 10% more for its models under a no-deal Brexit. 

Contrasting to the retained 10% levy on imported cars, the Secretary of of State for International Trade, Liz Truss, has actually reduced or removed current tariffs on a number of products, including dishwashers and freezers, cooking products, sanitary products and Christmas trees.

More than £30 billion worth of imports will have tariffs removed in total, the government claims.

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Comments
38

19 May 2020
I'll keep driving my current car until it or I fall apart!

19 May 2020

Don't forget that the EU will also add tariffs on to those cars being exported from Britain in to the EU.   Making British products, across the board, less attractive to our EU customers.   How daft is that?

 

Well done Brexiters!   You've shot yourself in both feet!

19 May 2020

it should be 30% duty and use some of it to invest in uk auto Honda are xshutting down becaus ethe Eu said they would stop the 10% duty on jap imports

19 May 2020

Big important word that and it took a few paragraphs for it be slipped in.

BMW, Mercedes etc will be on the phone to one of the many EU bureaucrats begging for a BREXIT deal to be made today.

20 May 2020
xxxx wrote:

Big important word that and it took a few paragraphs for it be slipped in.

BMW, Mercedes etc will be on the phone to one of the many EU bureaucrats begging for a BREXIT deal to be made today.

20 May 2020
Well that was impressive, Autocar website. Deleting all of what I actually wrote and just quoting the whole of that post with a different title...

Here's the gist of what I actually wrote:

People have said that German car manufacturers will twist the EU's arm into a deal since 24 June 2016. No sign of them doing so thus far and I suspect they will just focus on other markets instead like China if there is a no deal situation.

19 May 2020

 Perhaps Honda have given up in Europe, pity as I like the civic Type R

19 May 2020
Ski Kid wrote:

 Perhaps Honda have given up in Europe, pity as I like the civic Type R

 

Sadly, it is more likely that Nissan and Toyota follow suit. 

19 May 2020
Ski Kid wrote:

 Perhaps Honda have given up in Europe, pity as I like the civic Type R

Thanks EU, still made it easier to sell French cheese and BMS's in Japan. Thanks again

19 May 2020

This article seems to forget that UK cars exported to the EU will also become 10% more expensive. 

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