The British Department for International Trade has revealed this in its external announcement on the trade tariffs after Brexit. The default terms of the World Trade Organization (WTO) mean that cars manufactured in the EU face the same tariff rate as those produced in other parts of the world.
At present, there is no import tariff on cars produced in the EU in the UK. Unless the UK can reach a new trade agreement with the EU before the end of this year, a 1% tariff policy will apply.
the British government believes that imposing tariffs on industries such as automobiles is essential to "help support industrial prosperity in all parts of Britain and the whole country", including manufacturing. If the real-time 1% tariff policy is implemented, Jaguar Land Rover, a British car manufacturer, will probably benefit from it, because the premium of the brand's main competitor, German cars, will rise.
Considering that it is unlikely that the automobile manufacturers in the EU will absorb these extra tariff costs, it means that in most cases, these costs will be passed on to consumers. For example, Porsche said last year that if Britain did not reach a new Brexit agreement with the EU, its customers would have to pay 1% more for car purchase.
Unlike the attitude of keeping 1% tariff on imported cars, Liz Therus, British Minister of International Trade, has actually reduced or abolished tariffs on some other imported products, including dishwashers and freezers, cooking products, sanitary products and Christmas trees. The British government said that imports with a total value of more than 3 billion pounds would be exempted from customs duties. (Author/Little Devil)
This article comes from the author of Chejia, car home, and does not represent car home's standpoint.