Cars will cost 10% more under no-deal tariff plan
CAR prices would rocket under plans for a no-deal Brexit revealed by the Government yesterday.
The UK would slap tariffs of 10.6% on the cost of “fully finished” cars imported from the EU – hiking the price of an average £15,000 family hatchback by £1,500.
The move would apply to all countries with which the UK does not have its own free trade deals, including the EU. The cost of importing some goods from the bloc would rise, because the UK currently has a tariff-free relationship with it.
But the cost of bringing in goods from most of the rest of the world would fall, as the UK exploited its freedom from Brussels to cut tariffs on certain products.
Theresa May was accused of a fresh betrayal of Britain’s steel industry after threatening to slash tariffs to zero.
The Government unveiled plans to strip back duties on imports to 0% from 0.8%, exposing UK manufacturers to cheaper competition from abroad.
The move would cut the cost of metal from abroad, piling new pressure on Britain’s struggling industry.
Although MPs ruled out a no-deal departure last night, campaigners said the plan revealed the Tories’ true attitude towards the vital sector.
Labour MP Stephen Doughty said: “Reducing tariffs to zero would betray steelworkers, and reveals the rightwing agenda of many behind Brexit.”
Roy Rickhuss, general secretary of steelworkers’ union Community, said: “The Government’s plan for zero tariffs would be a fresh betrayal of British steelworkers, putting further pressure on their jobs at a difficult time for the industry.”
The planned tariffs regime would apply for an emergency 12 months. Currently, about 80% of imports to the UK arrive without tariffs. That would rise to 87% as the Government slashes tariffs elsewhere. There would be protections for the British ceramic industry under the plans, with tariffs of 1.2% levied on imports from the EU. The proposed system would create two different tariff zones within the UK to keep open the border between Northern Ireland the Republic. For example, beef exported over the land border from Ireland to Northern Ireland would not be subject to tariffs in order to avoid customs checks. But beef exported across the Irish Sea to mainland Britain, via the Rosslare to Fishguard ferry route, for example, would be slapped with tariffs.
Officials would also crack down on potential smugglers by monitoring any suspicious activity, which indicated exports to Britain could be sent through Northern Ireland in order to avoid paying duties.
The plans also raise the prospect of Northern Irish farmers being slapped with EU tariffs for sending their products to Ireland, while Irish rivals just over the border were able to send their goods to Northern Ireland without extra taxes.