Europe's EV Tariff Delay Highlights Battery Supply Chain Challenges
European and British carmakers are urging Brussels to delay the next phase of post-Brexit electric vehicle (EV) tariffs due to insufficient battery supply chains. The EU-UK Trade and Cooperation Agreement requires stricter rules of origin for tariff-free trade, but the battery industry has not developed quickly enough to meet these requirements. The current rules were extended until the end of 2026, but without further adjustments, vehicles not meeting the new local-content thresholds could face tariffs from January 2027. This situation tests Europe's strategy for EVs and industrial autonomy, as the sector remains reliant on Asian supply chains.