The UK is entering into crunch talks with the EU this afternoon, to discuss tariffs on electric vehicles produced in Britain.
The high tariffs, which are set to come into force from January, are seen by many in Whitehall as a form of revenge tax on the UK post-Brexit.
The rules impose 10 per cent tariffs on electric vehicles traded between the EU and the UK.
The European Automobile Manufacturers’ Association (ACEA) warned that the tariffs could cost EU vehicle makers £3.7 billion (€4.3 billion) over the next three years.
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It warned that this cost would cause electric vehicle production to plummet by around 480,000 units.
Car giants including Renault, BMW and Mercedes-Benz have called on EU leaders to "act now" to delay the plans.
Renault boss Luca de Meo warned that the EU would be "handing a chunk of the market to global manufacturers” including Chinese companies if the tariffs are not delayed or cancelled.
The talks, which will begin at 1pm, are set to centre around measures in the Trade and Cooperation Agreement (TCA) between the UK and EU.
When the UK left the EU in 2020, the bloc refused to budge on electric vehicles, imposing punitive levies on Britain.
The European Commission is currently under pressure to postpone or reduce the tariff because EU e-vehicle production is at low capacity.
Director General of the Institute of Export and International Trade (IOE&IT) Marco Forgione told Express.co.uk: "One of the biggest problems we have is the pressure on e-vehicles and the trade of vehicles between Great Britain and the EU.
"We're seeing pressure now from the EU [member states], for the Commission to delay full implementation of the demands of the Trade and Cooperation Agreement (TCA) around electric vehicles because e-vehicle production in Europe hasn't scaled up sufficiently.
"Part of that will be the supply chain starting to get the critical minerals required."