Macroeconomy

London sacrifices electric car sales targets due to tariff war

Prime Minister Keir Starmer announces exemptions for British luxury car brands

British Prime Minister Keir Starmer visited Jaguar Land Rover factory
07/04/2025
2 min

LondonThe British government announced on Monday a relaxation of sales targets for electric vehicles to help the automotive industry cope with tariffs, following the trade war unleashed by Donald Trump. This year, at least 28% of cars sold by manufacturers in the United Kingdom should be fully electric, not hybrids. However, in the first three months of 2025, the figure has not exceeded 21%. The percentage should increase each year until 2030, when a fine will be imposed for every gasoline or diesel car sold. And from 2035 onwards, all sales should be electric cars. Furthermore, the ban on hybrid vehicles has been diluted over time, having been postponed from 2030 to 2035.

Faced with growing pressure from manufacturers, Prime Minister Keir Starmer announced this Monday from the Land Rover manufacturing plant in the West Midlands. s per vehicle. In addition, exemptions from decarbonization targets have also been granted to small start-ups, and to traditional British luxury car brands such as Aston Martin, Bentley, Jaguar, and McLaren, which will not have to stop selling gasoline and diesel cars until 2030. ~BK_S , from all vehicle exports to the United States, after a 25% tariff on all vehicles entering the country was announced.

During his speech in which he made his announcement, Starmer recalled that "it is a time to keep a cool head" and that "nobody wins with a trade war; nobody pretends that tariffs are good news. 25% tariffs on vehicle exports and 10% on other goods." Beyond the specific announcements, the most relevant aspect of Starmer's speech was his rhetoric, when he spoke of a "completely new world" in which the old certainties "no longer work."

Still, the prime minister has assured that his government's green goals remain in place: "As we've shown today, we're not ideological, we're pragmatic. If there are flexibilities that help, which is what we've done today, then of course we will take those steps."

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