Green boost for carmakers as Starmer takes on tariffs

Sir Keir Starmer has pledged bold changes” to the rules around electric and new petrol and diesel cars in response to Donald Trump’s tariffs.

- ARCHIE MITCHELL DAVID MADDOX

The prime minister will announce Labour's plan to reinstate the 2030 ban on new petrol and diesel car sales today, in a move expected to pile pressure on Britain’s beleaguered motor industry.

Businesses are currently grappling with the new rules from the White House, which mean a 25 per cent tariff is now applied to foreign cars imported into the US, while other products face a 10 per cent levy.

The prime minister’s announcement follows Jaguar Land Rover’s decision to suspended shipments to the US over the weekend, as they look to “address the new trading terms”.

Labour pledged in their election manifesto to restore the 2030 date, after it had been rolled back to 2035 by Rishi Sunak’s Conservative government.

Sir Keir will say today that “global trade is being transformed” and businesses need “a government that steps up”.

“That means action, not words,” the prime minister will say. “So today I am announcing bold changes to the way we support our car industry. This will help ensure home-grown firms can export British cars built by British workers around the world, and the industry can look forward with confidence, as well as back with pride.”

The decision to push ahead with reinstating a hard ban is accompanied by a significant package of flexibilities to help the industry transition more easily, the Department for Transport says, including postponing a ban on petrol or diesel vans until 2035.