British Car Production to Suffer if EU Inflicts Tariff on Exports After Brexit: SMMT

According to the SMMT, annual car production in Britain could contract by one third till 2024 in case the EU imposes tariffs on British goods post Brexit. Annual car production could shrink to 1 million by 2024 in the face of tariffs which could cost Britain its competitive edge and make cars manufactured in other markets more attractive to European consumers.

UK citizens will cast their vote on December 12, either for the Conservatives who have stated their interest in getting Brexit done before the end of this year, or for the Labour Party that is keen to renegotiate Brexit starting with a second referendum on the issue next year. Early predictions give Conservatives the lead for now, which would put trade in focus next year after Brexit happens.

Car manufacturers in Britain have called for ensuring a hassle-free trade relationship with the EU as it is their largest and most important export market. The auto sector also contributes the most to Britain’s economy via its exports. According to WTO’s estimates, tariffs on imports of components and exports of finished automobiles could increase manufacturing costs by up to 3.2 billion pounds per year.