The UK government has published its post-Brexit tariff regime, which includes a 10% duty on vehicles coming into the country.
Labelled the Global Tariff, the proposed measures will replace the EU’s Common External Tariff on 1 January 2021 at the end of the Brexit Transition Period.
Liz Truss, international trade secretary, said: “For the first time in 50 years we are able to set our own tariff regime that is tailored to the UK economy. Our new Global Tariff will benefit UK consumers and households by cutting red tape and reduce the cost of thousands of everyday products.
“With this straightforward approach, we are backing UK industry and helping businesses overcome the unprecedented economic challenges posed by coronavirus.”
Earlier in the year, Mike Hawes, chief executive of the SMMT, said avoiding expensive tariffs and other barriers that limit market access should be a priority. “Both sides want a thriving sector and we want to work with the government to help a mutually beneficial arrangement on regulation that safeguards UK manufacturing and consumer choice by allowing vehicles built in the UK to be sold in the EU and vice versa without additional requirements that would add billions to the cost of development.”
Last year, Volkswagen revealed that any tariffs associated with Brexit could be passed down through the chain to consumers via an increase in car prices – a sentiment shared by other manufacturers.
Hawes concluded: “It is important, therefore, that we have early sight of the details of the Government’s ambitions so we can evaluate any impact on our competitiveness and the future of volume manufacturing in the UK.”