EU and UK Car Industries Press European Commission for Second Suspension of Brexit EV Tariffs as Battery Targets Fall Far Short
The European and UK automotive industries are urging the European Commission to suspend, for a second time, tariffs on electric vehicle imports under the EU-UK Trade and Cooperation Agreement, after confirming they will be unable to meet the battery manufacturing targets required for tariff-free trade from 1 January 2027. Under the 2020 Brexit deal, 55% of a car's value and 70% of its battery pack had to be made in Europe to qualify for tariff-free status by that date. A first suspension was agreed in 2024 after the industry missed earlier milestones. With seven months now remaining, the industry's own estimates show that only "just under 20%" of EV batteries will be manufactured in the EU by January 2027 — far below the required threshold. The UK's domestic production level is higher but also below target. ACEA (the European Automobile Manufacturers' Association), whose director general is Sigrid de Vries, has called for a "policy shift" at the Commission. SMMT (the UK's Society of Motor Manufacturers and Traders) chief executive Mike Hawes warned that battery supply chains "are still not ready" and called on the UK and EU to find "a pragmatic solution that avoids self-defeating tariffs on the very vehicles consumers are being urged to buy." The European Commission confirmed it is "in constant contact with stakeholders" but has not committed to a further suspension. European leaders are due to meet on 18 June, with China's industrial dominance in battery materials on the agenda. European battery manufacturing costs remain around 30% higher than Chinese equivalents, and opening a mine and building a full lithium production chain requires approximately $750 million and several years of lead time.
Why this matters
The failure to meet rules-of-origin targets under the EU-UK Trade and Cooperation Agreement is a direct trade law problem that intersects with energy transition policy and manufacturing investment. If the Commission declines a second suspension, tariffs on EV imports between the UK and EU would snap back — potentially at rates that make cross-Channel automotive trade uneconomic and accelerate supply chain restructuring. This creates advisory demand in trade law, regulatory compliance, and energy transition practice. The 18 June European Council meeting is a hard deadline for industry lobbying; the outcome will determine whether automotive clients face a major compliance and restructuring event before year-end.
On the Ground
A trainee on an energy or trade regulatory matter here would be preparing regulatory filing coordination summaries of the TCA's rules-of-origin provisions, drafting licence condition summaries comparing the 2024 suspension terms with current proposals, and preparing compliance gap analysis memos assessing which EU and UK manufacturers remain below the threshold. Liaison with local counsel in Brussels and London to track Commission communications would also be active work.
Interview prep
Soundbite
A second tariff suspension is a de facto admission that the Brexit EV battery strategy has failed on its own terms.
Question you might get
“What legal mechanism would be used to implement a second suspension of the Brexit EV tariff rules, and what procedural steps would the European Commission need to take before January 2027?”
Full answer
The EU and UK automotive industries are lobbying the European Commission to suspend Brexit-era EV tariffs for a second time after confirming that only around 20% of batteries will be EU-made by the January 2027 deadline — against a 70% target. The commercial stakes are enormous: without a suspension, tariffs would snap back on cross-Channel EV trade, potentially adding hundreds of pounds per vehicle and disrupting supply chains built around integrated EU-UK production. The structural driver is China's dominance of battery raw materials and cell manufacturing, which makes the 'made in Europe' targets undeliverable at current investment rates. The 18 June European Council meeting is the next pressure point, and failure to agree a suspension could trigger a wave of trade compliance and restructuring mandates for City firms advising automotive clients.
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