UK Government Announces Support for Car Industry Amid Tariff Challenges
Prime Minister outlines measures to bolster the automotive sector in response to US tariffs on imported vehicles.
In response to the recent implementation of tariffs on imported vehicles by the United States, UK Prime Minister Sir Keir Starmer has announced a series of measures aimed at revitalizing the British automotive sector.
The tariffs, which impose a 25% levy on foreign cars and a 10% tariff on other imported goods, have prompted concerns among domestic manufacturers about the potential impact on exports and competitiveness.
Jaguar Land Rover announced a pause in shipments to the US as it assesses the new trading environment.
In light of these challenges, Sir Keir emphasized the need for a proactive government approach to support British automotive manufacturers.
He stated that the current global trade landscape necessitates urgent action to maintain the industry's competitive edge.
As part of the initiative, the Prime Minister confirmed the reinstatement of the 2030 ban on the sale of new petrol and diesel vehicles.
New regulations are set to adjust manufacturing targets for electric cars and vans, facilitating a smoother transition within the industry.
Additionally, luxury automotive manufacturers like Aston Martin and McLaren will be permitted to produce petrol cars past the 2030 deadline, given their limited production volumes.
The allowance for hybrids and plug-in hybrid vehicles to be sold until 2035, along with petrol and diesel vans, is also part of the government's framework.
The UK government plans to provide increased flexibility for manufacturers regarding compliance with sales targets to mitigate potential penalties.
Ministerial officials indicated that ongoing assessments of the tariff situation will guide future support measures for the automotive sector.
Further government announcements are anticipated this week, potentially advancing elements of the broader industrial strategy originally scheduled for later in the year.
In a statement published in the Sunday Telegraph, Sir Keir reiterated the government's readiness to leverage industrial policy to shield businesses from the adverse effects of the tariffs.
The Prime Minister has been in dialogue with foreign leaders, including those from France, Italy, and Australia, as well as officials from the European Commission, to address concerns surrounding the tariffs.
Significant tariff adjustments are expected to impact Germany, where a 20% tariff rate is impending.
The Society of Motor Manufacturers and Traders (SMMT) has voiced its apprehension regarding the changing trade dynamics, stating that further action may be necessary to protect the UK's automotive industry.
Chief Executive Mike Hawes called for accelerated negotiations between the UK and US and emphasized the importance of prioritizing automotive strategies in upcoming industrial policies.
The opposition Conservative Party has criticized the government's response, claiming it lacks sufficient assertiveness in supporting manufacturers, while the Liberal Democrats have asserted that the current measures alone are inadequate to shield the sector from the repercussions of the imposed tariffs.
The Liberal Democrats have advocated for enhanced consumer incentives for electric vehicle purchases, including possible VAT reductions and delaying upcoming tax increases on electric vehicles.
The tariffs, which impose a 25% levy on foreign cars and a 10% tariff on other imported goods, have prompted concerns among domestic manufacturers about the potential impact on exports and competitiveness.
Jaguar Land Rover announced a pause in shipments to the US as it assesses the new trading environment.
In light of these challenges, Sir Keir emphasized the need for a proactive government approach to support British automotive manufacturers.
He stated that the current global trade landscape necessitates urgent action to maintain the industry's competitive edge.
As part of the initiative, the Prime Minister confirmed the reinstatement of the 2030 ban on the sale of new petrol and diesel vehicles.
New regulations are set to adjust manufacturing targets for electric cars and vans, facilitating a smoother transition within the industry.
Additionally, luxury automotive manufacturers like Aston Martin and McLaren will be permitted to produce petrol cars past the 2030 deadline, given their limited production volumes.
The allowance for hybrids and plug-in hybrid vehicles to be sold until 2035, along with petrol and diesel vans, is also part of the government's framework.
The UK government plans to provide increased flexibility for manufacturers regarding compliance with sales targets to mitigate potential penalties.
Ministerial officials indicated that ongoing assessments of the tariff situation will guide future support measures for the automotive sector.
Further government announcements are anticipated this week, potentially advancing elements of the broader industrial strategy originally scheduled for later in the year.
In a statement published in the Sunday Telegraph, Sir Keir reiterated the government's readiness to leverage industrial policy to shield businesses from the adverse effects of the tariffs.
The Prime Minister has been in dialogue with foreign leaders, including those from France, Italy, and Australia, as well as officials from the European Commission, to address concerns surrounding the tariffs.
Significant tariff adjustments are expected to impact Germany, where a 20% tariff rate is impending.
The Society of Motor Manufacturers and Traders (SMMT) has voiced its apprehension regarding the changing trade dynamics, stating that further action may be necessary to protect the UK's automotive industry.
Chief Executive Mike Hawes called for accelerated negotiations between the UK and US and emphasized the importance of prioritizing automotive strategies in upcoming industrial policies.
The opposition Conservative Party has criticized the government's response, claiming it lacks sufficient assertiveness in supporting manufacturers, while the Liberal Democrats have asserted that the current measures alone are inadequate to shield the sector from the repercussions of the imposed tariffs.
The Liberal Democrats have advocated for enhanced consumer incentives for electric vehicle purchases, including possible VAT reductions and delaying upcoming tax increases on electric vehicles.
