Even if Brexit deal is reached, decision means vehicles without enough British components will attract tariffs
British car manufacturers could face higher export tariffs with or without a Brexit deal after the EU rejected an argument that components from Japan used on UK assembly lines should be considered British.
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The car industry has maintained that parts for cars, vans and trucks that have been sourced in non-EU countries should be deemed British under the rules of origin system that will apply to all exports from 1 January when the transition period is over.