Stay informed with free updates
Simply sign up to the EU trade myFT Digest — delivered directly to your inbox.
Brussels has proposed delaying the introduction of tariffs on electric vehicle sales between the UK and EU by three years, agreeing to a request from London backed by the automotive industry.
The European Commission will on Wednesday approve the plan, officials familiar with its thinking told the Financial Times. The 27 member states must then agree, with the vast majority in favour.
The British government, backed by carmakers from across Europe, had sought the deferral of the post-Brexit tariff, which it argued would heap excessive costs on to the industry from 2024 to 2027.
The 10 per cent duty had been set to be imposed on cars with batteries made outside the UK and EU under the post-Brexit trade deal due to take effect on January 1.
The commission had previously insisted it would stick by the original calendar for the tariff, warning it would reduce incentives for battery makers to invest in the bloc.
This is a developing story