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Toyota and Nissan demand UK cover tariffs if no EU deal reached

Pressure grows on Boris Johnson ahead of summit with EU leaders next week

The U.K. faces growing pressure from automakers to reach a free trade agreement with the European Union. (Source photos by Reuters and Kyodo)

FRANKFURT -- Japan's Toyota Motor and Nissan Motor are demanding that the British government cover additional tariffs that could arise if the country cannot conclude a free-trade agreement with the European Union, Nikkei learned on Monday.

The U.K., which left the EU in late January, is in a transition period that allows the country to enjoy until the end of this year zero tariffs the same as when it was a member of the EU. If the two parties cannot agree on a deal and the transition period ends on Dec. 31 without one, tariffs on passenger cars will jump to 10% from Jan. 1, 2021.

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