On Wednesday, British Business Secretary Kemi Badenoch expressed strong confidence in finding a resolution for automakers to circumvent imminent tariffs on the trade of electric vehicles (EVs) with the European Union, stating that she was “very optimistic” about the prospects.
"We're regularly raising this with EU counterparts, and it is just simply the nature of trade negotiations and trade policy," said Badenoch during an even hosted by the Society of Motor Manufacturers and Traders (SMMT).
"These things tend to take quite a while, and then get delivered at the last minute. I'm personally very optimistic that we will find a solution," she added.
As outlined by the stipulations of the Brexit trade deal, under "rules of origin," EVs are required to incorporate 45% EU or UK content by 2024, along with a 50%-60% requirement for their battery cells and packs, or be subjected to tariffs.
However, the current state of European and British EV supply chains does not yet meet the necessary criteria for the production of electric cars that adhere to these rules, thereby leaving automakers at risk of a 10% tariff.
The SMMT has asked for a waiver on the rules to be extended for an additional three years.
Badenoch also indicated, without elaborating further, that the government might put in place additional measures to reinforce the auto industry should negotiations with the EU fall through.
"I think that if the EU does not agree to what we think is the best solution, then the UK government is going to have to step in and do something different," Badenoch said.