In early April 2025, the US announced incoming tariffs on foreign goods, a hugely controversial decision that has potential knock-on effects throughout world markets. While some countries work to understand the issue, the UK has taken a positive step to secure and support the future of British car manufacturing and industry.
In response to potential tariffs and economic uncertainty, Keir Starmer has taken a major step to support the British car industry. The deadline for the implementation of the zero-emission vehicle mandate has been extended to help UK car manufacturers respond to potential tariffs.
On top of this, the UK government has also announced the following:
These moves will come as welcome news to UK manufacturers, and cement faith in British-backed manufacturers like Rolls-Royce and Range Rover. On top of these changes, Keir Starmer had the following to say:
“Global trade is being transformed, so we must go further and faster in reshaping our economy and our country through our plan for change”.
He then went on to add:
“This will help ensure home-grown firms can export British cars built by British workers around the world”.
At a time when manufacturers of all goods are concerned about the future export landscape brought by potential US tariffs, the commitment from the UK government to UK-based manufacturers is a positive sign.
As of February 2025, new car manufacturing in the UK was 7.6% lower than the year prior, with home production falling by 33% from 2024 (SNMT). The need for government involvement in UK car manufacturing isn’t new, but the emergence of US tariffs has escalated the need for reform and support for UK-based manufacturers. UK vehicle production has been gradually falling since 2019, and there’s hope that these changes can start to turn the tide for these companies.
The move towards EVs has been clear for many years, and the delay in hybrid vehicles leaving our markets isn’t a sign of any changes. As the largest EV market in Europe in 2024, the UK is clearly committed to sustainable vehicles, and its constant development of charging points across the UK ensures that it is prepared for the eventual full rollout of EVs in the future.
Trump’s tariffs have accelerated the need for UK car manufacturing support, but the issue has been present for a few years. Car production is in decline, but the steps laid out by the Labour government provide hope for the futures of UK manufacturers like Rolls-Royce, Vauxhall and Range Rover.
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