On the Dash:
- A Ford-backed group is urging the EU to delay EV import tariffs, citing battery supply chains that aren’t ready.
- EU and UK battery production is far behind schedule, now projected at just 20% of targets.
- If tariffs take effect in 2027, EV pricing and availability in global markets could shift.
A Ford-backed industry group is urging the European Union to suspend import tariffs on electric vehicles, according to a report in The Guardian. The outcome could affect EV availability and pricing for dealers across the market.
The European Automobile Manufacturers’ Association (ACEA) is among several industry groups urging the European Commission to delay enforcement of the tariffs. The current rules, established under a 2020 Brexit trade deal, require that 55% of a vehicle’s value be manufactured in Europe by 2027. For EVs, 70% of the battery pack and 65% of the battery cell must also originate from the EU.
Battery manufacturing in Europe has fallen well short of those targets. When the EU first suspended the tariff rules in 2024, the industry had forecast that 60% of batteries would be made in Europe by 2027. ACEA International Trade Director Jonathan O’Riordan now puts that figure at just under 20%.
If approved, this would mark the second import tariff delay on EVs. The EU first pushed back tariff implementation by three years in 2023, with that extension set to expire at the end of 2026.
O’Riordan says the shortfall is due in part to manufacturing costs that remain roughly 30% higher in Europe than in China.
ACEA Director General Sigrid de Vries, speaking at a Brussels event Friday, said battery development in Europe was progressing too slowly and called for a policy shift at the European Commission.
The European Commission says it remains open to the conversation. A spokesperson said discussions “can take place within the framework of ongoing EU-UK negotiations,” and noted the commission is “in constant contact with stakeholders” in the EV sector to gauge their readiness to meet the rules of origin.
