Locking UK out of ‘Made in Europe’ law will ‘hurt’ carmaking across EU, says Mercedes-Benz boss
Summary
The head of Mercedes-Benz and the European Automobile Manufacturers’ Association warned that excluding the UK from the EU’s new “Made in Europe” law would hurt car-making in both the EU and the UK. The law, designed to support local industry mainly against China, could block the UK from important EU contracts and bring tariffs on electric vehicle trade between the UK and EU.Key Facts
- The EU is working on the Industrial Accelerator Act (IAA), also called the “Made in Europe” law, to protect local industries from foreign competition, especially from China.
- Mercedes-Benz president Ola Källenius said keeping the UK out of this law would weaken the car industry on both sides, the EU and the UK.
- The UK government wants to be included in the law but faces resistance, especially from France.
- The EU has asked the UK to impose tariffs on Chinese cars like the EU did in 2024, which might support UK inclusion in the law, but the UK is not planning to do this soon.
- From 2025, a 10% tariff will apply to electric vehicles exported between the UK and EU unless they meet certain regional production rules, but this tariff has been delayed to give the industry more time.
- The car industry is asking for a further delay of the tariffs to avoid harming manufacturers.
- The EU and China have agreed to reduce sales of hybrid electric cars in the EU by half over four years to address China’s growing trade surplus with the EU.
- The trade tensions reflect ongoing challenges in balancing trade and industrial competitiveness between the EU, UK, and China.
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