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The European and UK car sectors are pressing the European Commission for a second extension of the Brexit EV tariff suspension, arguing that the 1 January 2027 rules on battery origin cannot be met.Industry Request for a Second Suspension of Brexit EV TariffsThe EU‑UK Trade and Cooperation Agreement requires that, from 1 January 2027, 55% of a car’s value and specific battery components be produced in Europe to qualify for tariff‑free trade. The original suspension, granted for three years, is set to expire at the end of 2026. With only seven months remaining, ACEA and the UK’s SMMT have formally asked the Commission to delay the re‑imposition of tariffs once more.Tariff‑Free Thresholds and Current Battery Production GapsUnder the 2020 deal, 70% of the battery pack and 65% of the battery cell must be European‑made. Initial expectations were that 30% of battery packs and cells would be produced in the EU or UK within a few years, but by 2023 this target proved unrealistic due to COVID‑19 disruptions and semiconductor shortages linked to Russia’s invasion of Ukraine. ACEA’s international trade director, Jonathan O’Riordan, noted that the industry had forecast 60% of batteries would be European by 2027, yet current estimates place the figure at just under 20%. In the UK the share is slightly higher but still below the required level.Implications for EU‑UK Automotive Trade and Battery InvestmentStakeholders warn that reinstating tariffs would be “self‑defeating”, discouraging consumers from buying EVs and eroding recent investments in domestic battery capacity. The high cost of battery production—still about 30% higher than in China—and the estimated $750 million required to develop a full lithium supply chain further strain the sector. Both ACEA’s director‑general Sigrid de Vries and SMMT chief executive Mike Hawes stress the need for a pragmatic, policy‑driven solution to protect the EU‑UK automotive partnership and broader competitiveness.Outlook: Possible Scenarios for Future EU‑UK EV Trade RulesThe European Commission has indicated willingness to discuss the issue within ongoing EU‑UK negotiations. Potential outcomes include another temporary suspension, a renegotiated rules‑of‑origin framework with lower thresholds, or the introduction of transitional measures to support battery supply‑chain development. European leaders are set to meet on 18 June, with China’s role in raw‑material supply also on the agenda, suggesting that geopolitical factors will continue to shape the final decision.