UK Carmakers Could Be Hit With Steep Tariffs After Brexit As Cars Might Not Be British Enough

British car manufacturers could be on the verge of receiving post-Brexit tariffs because not enough of their components are sourced from local suppliers.

Generally, UK firms must prove that 50 to 60 per cent of a product’s components come from within the UK to escape tariffs. However, the Automotive Council states that on average, UK cars are only 44 per cent British-made, Bloomberg reports.

Carmakers are currently permitted to classify parts sourced from Europe as British-made, allowing them to escape tariffs. However, when the country leaves the European Union, all of that will change as rules of origin policies are enforced, forcing brands to research using local suppliers at potentially higher prices.

A spokesman from Honda has already said that the company is already investigating new suppliers for the Civic, currently manufactured in the town of Swindon.

“If we have a free-trade agreement with the EU after Brexit, then we’ll have to have rules for determining whether the cars coming out of the U.K. really are considered British cars,” said Peter Holmes, an economist at the U.K. Trade Policy Observatory. 

Secretary general of European auto supplier association CLEPA, Sigrid de Vries, says that a number of car companies are “considering various options.”

“Changes will be complex and painful. The automotive industry is a prime example of how the EU internal market has helped underpin competitiveness in the face of global competition: The sector operates on the global market place,” she confirmed.

PHOTO GALLERY

Bone-Stock 2020 Ford Mustang Shelby GT500 Does The Quarter-Mile In…?

Dodge Redeyes and Camaro ZL1s you’d better watch out; the new Mustang Shelby GT500 is out to get you.

Modified Nissan Skyline Has Stunning Infinity Mirror Taillights

This Skyline in no GT-R, but it will dazzle you with its infinity mirror taillights that can also be remotely controlled .

One Owner 2000 Honda S2000 Is A Modern Classic With A Fresh Engine

Although this S2000 has 26,000 miles on the odo, the engine was replaced 4,000 miles ago.

BMW M2 Competition Proves Its Mettle At The Track

The BMW M2 Competition is powered by a twin-turbo 3.0-liter inline-six with 405 HP.

Tesla Cybertruck Styling Sort Of Works On A Two-Door Sports Car

In reality, Tesla’s idea of a sports car is something a lot prettier, like the upcoming Roadster.

BMW Drive Recorder Turns Surround-View Cameras Into Dashcams

The BMW Drive Recorder also automatically saves 40 seconds of footage in the case of a crash .

Driven: 2019 Suzuki Jimny Is Impossible Not To Love

The latest Suzuki Jimny is a vehicle that doesn’t impress on tarmac but shines when the going gets tough.

Someone Wants To Make A Fortune Off A McLaren Elva Build Slot

The German used car dealer behind the ad will charge you $3,295,730 for the McLaren Elva build slot.

TeslaCam Catches Chevy Silverado Rear Ending Model 3 Inside Car Wash

The Tesla driver learned you should always watch your back, even in an automatic car wash.

The Porsche Taycan Is An EV You Might Actually Want To Drive

The Porsche Taycan range is topped out by the Turbo S variant, which offers up to 750 hp.