Overview

• The US has imposed a 25% tariff on foreign cars, affecting 27% of UK auto exports and pressuring the sector's economic viability.
• Prime Minister Keir Starmer has reinstated the 2030 ban on new petrol and diesel car sales, allowing hybrids and petrol vans until 2035.
• Luxury car manufacturers like Aston Martin and McLaren are exempt from the ban due to their low production volumes.
• Jaguar Land Rover has paused US shipments to address the impact of the new tariffs, while the UK government pursues a carve-out in trade negotiations.
• The Society of Motor Manufacturers and Traders has called for stronger government action to protect jobs and competitiveness in the UK auto industry.