UK PM Rishi Sunak taps Scholz to help delay EU's looming EV tariff

Rishi Sunak is looking to enroll Germany’s Olaf Scholz to help delay upcoming tariffs on electric vehicles shipped between the UK and the European Union, according to people familiar with the matter.

The UK prime minister tapping the leader to the home of Volkswagen, BMW and Mercedes comes as the EU isn’t budging from its timetable with a phase-in starting next year. The looming 10 per cent tariff on EVs crossing the Channel could cost the industry €4.3 billion ($4.7 billion) and boost competition from China, the European Automobile Manufacturers’ Association said last month. 

The UK has raised the issue directly with Berlin, one of the people said. Spokespeople for Downing Street and the German government declined to comment.  Under the UK’s post-Brexit arrangements, EVs traded between Britain and the EU from next year will attract a 10 per cent tariff if less than 45 per cent of their value comes from the region.