TOKYO — Toyota and Nissan will ask for reimbursement from Britain if the U.K. government fails to agree on a trade deal with the European Union, the Nikkei financial daily reported on Monday.
The Japanese automakers are bracing for a 10 percent tariff on cars exported from the U.K. to the EU and are demanding that the government pay extra costs, the Nikkei reported on Monday.
British Prime Minister Boris Johnson said on Sunday that he did not particularly wish for a Brexit transition period to end without a new trade deal in place but that Britain could live with such an outcome.
Officials for the automakers declined to comment on the report, though Nissan expressed concern about the potential impact of a no-deal Brexit on its business.
“We urge U.K. and EU negotiators to work collaboratively towards an orderly, balanced Brexit that will continue to encourage mutually beneficial trade,” Nissan said.
Toyota builds the Corolla and the related Suzuki Swace compact cars at its plant in Burnaston, central England. It also produces engines at a factory in Wales.