EU and UK extends trade rules on EVs until 2026 to save $5.4 billion in additional costs

European Union (EU) and UK officially announced on Thursday the extension of current trade rules for electric vehicles (EVs).

Under the existing Trade and Cooperation Agreement (TCA), EVs and batteries required phased increases in these rules of origin requirements and the first increment was due to take effect on January 1st, 2024.

Due to various reasons and geopolitical issues, the UK and EU agreed to cancel the 2024 changes, and existing rules of origin will now for the next three years until the end of 2026.

The agreement supports EU-UK tariff-free trade in EVs and prevents 10% tariffs on this trade from January 2024. It is expected that the move will save up to £4.3 billion ($5.4 billion) in addition to costs for manufacturers and consumers.

(source)