Starmer unveils support for tariffhit auto sector

TDT | London

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UK leader Keir Starmer vowed yesterday to "shelter British business from the storm" of global economic disruption as he loosened electric vehicle targets for carmakers impacted by US President Donald Trump's tariffs.

The world's auto sector has been hit hard by Washington's sweeping new levies, which impose a 25 percent tariff on vehicles imported into the United States.

Starmer unveiled plans to give manufacturers more flexibility in transitioning to electric vehicles in a bid to boost the sector as it battles the higher costs of the levies.

He told staff and journalists at a car factory in England's West Midlands region that the measures were a "downpayment" and not "the extent of the turbocharging" to help businesses deal with tariffs.

In the coming days and weeks, we're going to use industrial policy to shelter British business from the storm," the prime minister added.

He called the levies "a huge challenge" for the future, warning that the "global economic consequences could be profound".

In an early sign of the fallout, UK luxury car manufacturer Jaguar Land Rover announced over the weekend that it would "pause" shipments to the US in April as it addressed "the new trading terms".

Starmer said on Sunday that he was prepared to directly intervene to support affected sectors, before later unveiling his plans to help the auto industry.

These included confirmation that all sales of new petrol and diesel cars will be outlawed by 2030, with hybrids to be sold until 2035 and small manufacturers exempt.

The government has already announced £2.3 billion ($3.0 billion) to boost the production of electric vehicles, and on Sunday said that it would ease rules on how manufacturers can achieve the 2030 target.

The package of measures will exempt small and micro-volume manufacturers, including supercar brands such as McLaren and Aston Martin, from the targets.

Vans with an internal combustion engine will be allowed to be sold until 2035.