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Trade Group Warns Brexit Could Hike U.K. Car Prices $1,900
Car prices in the U.K. could rise an average £1,500 unless the country can find a way to avoid tariffs after it leaves the European Union, the Society of Motor Manufacturers and Traders warns.
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Car prices in the U.K. could rise an average £1,500 unless the country can find a way to avoid tariffs after it leaves the European Union, the Society of Motor Manufacturers and Traders warns.
The London-based industry group says England is on track to set a vehicle export record this year because of investments made before the Brexit vote in June. But that could fade in future years if sales costs rise.
The U.K. hopes to negotiate a continuation of its current tax-free “single-market” status. However, EU officials insist that won't happen unless the country agrees to maintain free movement of labor. Brexit was driven largely by a desire among voters to limit immigration, a step endorsed by Prime Minister Theresa May.
SMMT estimates that EU import tariffs on cars from the U.K. could rise to 10% under World Trade Organization rules, Bloomberg News reports. The group claims such taxes could raise the annual cost of Britain’s imported and exported vehicles by £2.7 billion ($3.4 billion) and £1.8 billion ($2.2 billion), respectively.
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