Quote:
Originally Posted by nomadking
That extra 10% won't go to Porsche or the EU, it will go to the UK Treasury.
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... if, and only if, HMG decides to slap tariffs on car imports, which it would be under no obligation to do.
The EU’s common external tariff on vehicles is 10%. But we are leaving the customs union for the exact purpose of no longer having to follow EU customs rules.
Unlike the good old days of British Leyland, we don’t have an indigenous car manufacturing base that relies on domestic sales and is vulnerable to imports. By and large, vehicles are manufactured in the UK by foreign companies as part of a broader international strategy. Zero-rating duty on car imports would not harm those operations and in fact by encouraging reciprocal arrangements would probably help them.
On the morning of 30 March, if there is No Deal, we will be free to design our own customs rules for cars which support our own transport and/or environmental strategy. Or, to help mitigate the short-term economic shock of No Deal, we could just slash tariffs on just about everything.
We will have sovereign control over our affairs and that’s the whole point of Brexit.