Prime Minister Rishi Sunak hopes EU will waive electric car tariff

Prime Minister Rishi Sunak and his wife Akshata Murty disembark their plane as they arrive at Tokyo Aiport ahead of the G7 Summit in Japan. Credit: PA

The prime minister says that his government is “engaged in a dialogue with the EU” to prevent the introduction of tariffs on sales to the bloc of electric vehicles made in the UK - following warnings that the tax could force car makers to quit the UK.

“It’s something car manufacturers across Europe, and not just in the UK, have raised as a concern” he said.

Rishi Sunak addresses concerns UK car makers could quit due to the introduction of taxes

The tariffs will be imposed in January on electric vehicles where less than 45% by value of a vehicle, and less than 60% of its battery, is made in the UK or EU.

There is inadequate battery-making capacity in the UK and in much of the EU for this threshold to be reached in many cases.

The prime minister said that later today he would be holding discussions in Tokyo with Nissan, whose creation of a car plant in the UK 37 years ago symbolised the revival of car manufacturing in Britain.

Today in Tokyo, Rishi Sunak is announcing £18bn of investments by Japanese companies in the UK.

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