UK Cars to Face 6% Tariff on Exports to Canada as Post-Brexit Trade Deal Expires

UK Cars to Face 6% Tariff on Exports to Canada as Post-Brexit Trade Deal Expires
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Starting Monday, UK cars exported to Canada will be subject to a 6% tariff due to the expiration of a post-Brexit agreement that maintained EU trading terms. This change affects UK products that use EU parts and materials, meaning they no longer qualify for zero-tariff trade.

In 2023, 1.3% of British-built cars were exported to Canada, making it the UK’s eighth-largest market, according to the Society of Motor Manufacturers and Traders (SMMT). The UK car industry has expressed concern over the tariffs, with SMMT’s Mike Hawes calling the development “disappointing” and warning that the increased costs will likely be passed on to consumers.

Hawes urged all parties to resume negotiations for an upgraded trade deal, emphasizing Canada’s significance as a market for UK automotive exports. The tariff issue is part of a broader disagreement between the UK and Canada, including disputes over tariffs on UK cheese exports and the UK’s refusal to allow imports of Canadian hormone-treated beef.

Despite discussions between Trade Secretary Kemi Badenoch and her Canadian counterpart, no breakthrough has been achieved, and the UK government has criticized Canada for its unwillingness to extend the current trade terms. A UK government spokesperson stated that Canada’s decision would increase trade costs and hurt businesses on both sides of the Atlantic.

Massimiliano  Verde

Massimiliano Verde is a journalist at Parliament News, He is covering Society and Culture News. Boasting a Master's Degree in Political Science, stands as a prominent figure in the Italian cultural landscape. His presidency of the Neapolitan Academy, a scientifically and sociolinguistically renowned group, attests to his relentless dedication to safeguarding and promoting Neapolitan language and culture. His activism and profound expertise have propelled him into the role of interlocutor for UNESCO as part of the International Decade of Indigenous Languages (2022-2032), a prestigious acknowledgment highlighting the significance of his efforts in preserving the linguistic and cultural diversity of our planet.

Verde's fervent passion for the history and culture of Southern Italy has driven him to immerse himself in research, resulting in numerous essays and articles that delve into the peculiarities and beauties of the region. His commitment extends beyond academia, manifesting in ongoing dissemination activities aimed at acquainting the general public with the rich cultural heritage of the South. His endeavors transcend national boundaries, as evidenced by his participation in international conferences and collaboration with various foreign institutions, rendering him an ambassador of Southern culture on the global stage and fostering intercultural dialogue and mutual understanding.