A Berlin trade body has warned that the price of German cars sold in the UK could increase by 10 per cent if a trade deal isn’t reached between the UK and EU.
Under World Trade Organisation rules, German cars sold in the UK will be hit with a 10 per cent duty. According to Association of German Chambers of Industry and Commerce (DIHK) member Steffen Behm, this would force either the British importer or the German exporter to pay the levy. In either case, it would hurt the hip pocket of customers.
Auto Express says that 950,000 German vehicles worth a combined €20.8 billion ($24.5 billion) were imported to the UK in 2016.
Factoring in a 10 per cent duty, that would add €2.08 billion ($2.45 billion) to the annual bill.
The sentiments of the DIHK have been supported by the Society of Motor Manufacturers and Traders (SMMT). Speaking on the issue, SMMT president Gareth Jones said the UK government must look to protect the automotive sector.
“The Government has – commendably – put industrial strategy at the heart of business and the department for business. It does so as it faces its toughest challenge – leaving the EU. We must make the right decisions: on trade, on regulations and on business competitiveness,” Jones said.