Business editor Simon Jack shared that Prime Minister Sir Keir Starmer is ready to implement industrial policy measures to protect British businesses from the impact of US President Donald Trump’s recent tariff impositions. Trump’s tariffs, including a 10% baseline tariff and a 25% tariff on car imports, have already taken effect, raising concerns about the potential economic repercussions.
One of the main areas affected by the tariffs is the automotive industry, which accounted for approximately £9 billion in exports to the US in 2024. In response to the challenges posed by the tariffs and the evolving requirements for electric vehicle sales, Sir Keir is set to announce a relaxation of targets during a speech in the West Midlands. The plans include adjustments to annual sales targets leading up to the 2030 ban on petrol and diesel vehicles, providing flexibility for luxury car manufacturers like Aston Martin and Rolls-Royce.
Amid fears of goods being diverted to alternative markets due to the tariffs, the UK government is considering anti-dumping safeguards similar to those previously applied to the steel industry. These measures aim to prevent a surge in imports that could undermine domestic suppliers. The Department for Business and Trade is engaged in discussions with the Trade Remedies Authority to address potential threats to UK industries.
In light of the challenges posed by the tariffs, the UK government is expected to accelerate planned investments in industry and infrastructure to support economic growth. Additionally, efforts are underway to strengthen ties with countries heavily impacted by the tariffs, such as India. While trade negotiations are intricate processes that typically take years to finalize, the urgency of the current economic situation has expedited the timeline for securing new trade deals
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