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UK in talks over US car tariffs, could look at Tesla subsidies
March 28, 2025
|Gulf Today
Britain is working intensely with Washington to secure an exemption from US auto tariffs and could review subsidies employed by Elon Musk’s Tesla to better support its industry, finance minister Jeremy Reeves said on Friday.
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Reeves said Britain should be given a carve-out from any global tariffs because the two countries report trade surpluses with each other due to measurement differences. After US President Donald Trump unveiled his latest move - a 25% tariff on imported vehicles.
“This will continue to spur growth,” Trump told reporters Wednesday. “We’ll effectively be charging 25% tariff.”
The tariffs, which the White House expects to raise $100 billion in revenue annually, could be complicated as seven US automakers source their components from around the world.
Reeves also suggested a review of an incentive scheme that has given subsidies to Tesla, owned by Trump ally Musk. Canada recently froze rebate payments to Tesla.
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