- By Faisal Islam
- Economics editor
Image source, Getty Images
From Monday, any cars the UK exports to Canada will face an additional 6% tariff, or tax.
The change comes after a post-Brexit agreement to continue EU trading terms expired without a new deal.
The new tariffs are determined by whether the UK products exported to Canada use EU parts and materials.
Limits, which had been waived, will now apply, meaning that certain exports, including cars, will not 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), which represents the UK car industry.
The car industry has expressed its concern, especially as there appears no timetable for a resumption of discussions.
The tariff was “disappointing”, said Mike Hawes from SMMT, adding that manufacturers “can only do so much” to mitigate the higher costs for consumers which will result from the tariff.
“Given Canada’s importance as a market for UK automotive exports, and the detriment…
