Under the free trade agreement agreed between the United Kingdom and the EU = European Union, tariffs will be zero only for products with a certain percentage of parts imported from outside the region, but Japanese automobile manufacturers are the pillar of local production. For hybrid vehicles and electric vehicles, the conditions will be relaxed for 6 years until full-scale implementation.
The free trade agreement between the UK and the EU on the 24th will not impose tariffs on all items from next year onwards.
However, if a lot of parts imported from outside the region such as Japan are used, it will not be the target, and there was concern about the impact on Japanese companies such as Toyota Motor and Nissan Motor produced in the United Kingdom.
Regarding this, the UK and the EU have announced that they will relax the conditions for hybrid vehicles and electric vehicles, which are the pillars of production by Japanese manufacturers, for six years until full implementation.
Specifically, if the percentage of parts used from Japan, which is subject to zero tariffs, is up to 60% by 2023, up to 55% from 2024 to 2026, and up to the original 45% from 2027. doing.
Although it has been avoided for Japanese manufacturers to impose tariffs on some cars from next year, it will be necessary to raise the local procurement rate of parts in the future, and it will be necessary to review the business.