‘No-deal Brexit could cost consumers $7bn in car tariffs’

Bloomberg

A so-called Brexit without a trade deal between the UK and the European Union could cost the car industry and consumers at least $6.7 billion a year in vehicle tariffs, according to a report by a British industry group.
The Society of Motor Manufacturers and Traders said the estimate is based on levies of 10 percent on cars exports and imports from an industry that could also suffer production halts due to the split.
“Brexit is the major challenge that we have,” Mike Hawes, head of the SMMT said. “What we need to insure is that come November there is a withdrawal agreement because we cannot afford no-deal Brexit, that is the worst of the imaginable options for this industry.” The findings on Brexit for the car sector is one in a string of recent pleas from business to politicians who are spearheading talks aimed at breaking a deadlock on Brexit.
The UK and the EU signalled their readiness to work on getting a deal as PM Theresa May prepared for a crucial summit aiming to persuade EU leaders to back her plans.
If passed directly on to consumers, import tariffs would push up the cost of UK-built cars sold in the EU by an average 3,000 euros, while UK buyers of a car from the EU would be faced with 1.700 euro-increase if manufacturers and their dealer networks were unable to absorb additional costs, according to the a report by the lobby.
The report also shows that some seven out of every ten cars registered by UK drivers come from factories in Europe, whereas UK car plants send more than 40 percent of their output to the continent.