Brexit to increase prices of UK cars?
March 24, 2017 at 2:53 PM
Lots of elements are still unclear about what post-Brexit life will be particularly in terms of cross-border trade.
In the event, the UK were to exit the EU without any agreement it would fall under WTO rules. This rules mean that cars would face a 10% tariff when entering the single market and their components 4.5%.
Research led by PA consulting estimates the tariffs would add £2,372 to the price of an average car. Obviously tariffs would apply on both imported and exported cars.
The report warned that if 10% tariffs were introduced manufacturers would look to move production outside the UK.
The cost of exporting 200,000 cars a year from the UK would cost £460million in tariffs easily covering the building of a new plant in the EU area
Of course this is in the case no agreement is reached but this risk may represent £72billion and hit the 800,000 related jobs.
You can download the report here.