The United Kingdom is pushing the European Union over a Brexit trade deal deadline, which carmakers have said poses a threat to UK industry.

Prime Minister Rishi Sunak stated that the UK was “engaged in a dialogue” with the EU over a forthcoming rule change that could jeopardize the UK’s prospects for electric vehicles.

Carmakers in the United Kingdom and the European Union have asked for the rule change to be delayed.

Stellantis, the parent company of Vauxhall, Peugeot, Citroen, and Fiat, has stated that its UK facilities are under threat.

The corporation originally pledged to producing electric vans in the UK, but now claims that these ambitions are jeopardized.

It has warned that due to restrictions governing where parts are sourced, it may face 10% taxes on exports to the EU.

To qualify for tariff-free trade, 40% of the value of an electric car must originate in the United Kingdom or the European Union.

However, this percentage will grow to 45% at the start of next year, while the barrier for battery packs will be 60%.

The bar will be increased even higher in 2027, to 55% for the value of an electric car and 70% for battery packs.

Stellantis stated that it is “now unable to meet these rules of origin” due to recent increases in raw material and energy costs.

The European Automobile Manufacturers’ Association has also requested that the deadline be extended, claiming that the supply chain is not ready.

Mr Sunak told reporters in Japan, where he is attending a G7 conference, that the impending deadline was “something that car manufacturers across Europe, not just in the UK, have raised as a concern.”