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Government plans to impose a 10% tariff on new trucks in the event of a no-deal Brexit will put £10,000 on the price and stall economic recovery, the RHA has warned.

It follows the announcement this week of the new UK Global Tariff (UKGT) which will impose levies on some imports from 1 January 2021.

The Department of Trade and Industry (DTI) said the 10% tariff on new trucks is aimed at “supporting businesses in the UK”.

However, if the government secures a trade agreement with Europe the tariff will not apply.

RHA chief executive, Richard Burnett warned that the levies will make it harder for firms to invest in new trucks needed to move the goods that will drive economic recovery.

“The government says it’s confident of securing a free trade agreement with the EU but if it fails to do so this truck tariff will be a crippling blow for hauliers – putting £10k on the price of a new lorry.

“At a time when they are struggling with coronavirus, clean air zones and Direct Vision Standard during a likely recession this is another very unwelcome cost for our industry.”

The UKGT replaces the EU’s Common External Tariff on 1 January 2021 at the end of the transition period.

Announcing the UKGT today, the DTI stated: “The government is maintaining tariffs on a number of products backing UK industries such as agriculture, automotive and fishing. This will help to support businesses in every region and nation of the UK to thrive.”