Facing US tariffs on car imports, the UK government will relax electric vehicle (EV) sales targets for manufacturers. While the 2030 ban on new petrol and diesel cars remains, companies will have more flexible annual targets and face lower fines for non-compliance.
Transport Secretary Heidi Alexander said the move was a response to US President Trump’s tariffs, including a 25% levy on cars and a 10% tax on most UK goods. Opposition parties criticized the measures as insufficient.
The changes, sped up after the tariffs were imposed, will allow manufacturers to offset lower EV sales in one year with higher sales later. Fines for non-compliance will decrease from £15,000 to £12,000 per vehicle. The 2035 ban on new hybrid vehicle sales is unchanged, with smaller firms getting exemptions on petrol cars post-2030.
The government highlighted a previously announced £2.3bn investment in EV incentives and infrastructure. The US tariffs have also contributed to global stock market volatility amid wider US-China trade tensions. Negotiations on tariffs are expected to begin.
