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Imported cars subject to 10 per cent tariff from January, government confirms

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Time 10:38 am, May 19, 2020

ALL cars imported into the UK are set to be subject to a 10 per cent import tariff from January 1, the government has confirmed.

Unveiling its post-Brexit tariff regime, the Department for International Trade confirmed that cars would default to World Trade Organisation terms – the widely-touted 10 per cent levy – unless separate trade deals are struck before the end of the year.

The decision will be a hit to car makers that manufacture vehicles within the EU, whose import tariffs would jump from zero per cent to 10 overnight.


A potential trade deal with Brussels could see that tariff reduced or eliminated, but it’s understood that progress on negotiations continue to be slow.

Cars made outside Europe will be largely unaffected by the change, as they’re already subject to import duty of 10 per cent – though this could also be reduced as a result of individual trade deals that haven’t yet been struck.

While the confirmation is a blow to manufacturers whose cars are built in Europe, it’s seen as a vital step to protect manufacturing in the UK.


Conversely, the new plan introduces zero tariffs on a number of household items, including dishwashers and freezers, sanitary products, various cooking ingredients and even Christmas trees.

International Trade Secretary Liz Truss said: ‘Our new Global Tariff will benefit UK consumers and households by cutting red tape and reducing the cost of thousands of everyday products.

‘With this straightforward approach, we are backing UK industry and helping businesses overcome the unprecedented economic challenges posed by coronavirus.’

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Car Dealer has been covering the motor trade since 2008 as both a print and digital publication. In 2020 the title went fully digital and now provides daily motoring updates on this website for the car industry. A digital magazine is published once a month.



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