UK Reviews Tesla Subsidies as U.S. Tariffs on Imported Cars Loom

The UK government is negotiating exemptions from U.S. tariffs while considering removing Tesla from EV incentives, following Canada's retaliatory measures.

• The U.S. will impose 25% tariffs on imported vehicles, including British cars, starting April 3, 2025, citing national security and economic goals.
• UK Finance Minister Rachel Reeves confirmed ongoing negotiations with the U.S. to secure exemptions for British carmakers such as Jaguar Land Rover and Rolls-Royce.
• The UK is reviewing Tesla’s eligibility for £188 million in subsidies received since 2016, potentially removing the automaker from EV incentive programs.
• Canada has already excluded Tesla from its EV rebate programs in response to the U.S. tariffs, signaling broader trade tensions.
• Elon Musk warned that the tariffs will increase Tesla’s costs for imported parts, particularly from China, despite the company manufacturing U.S.-sold vehicles domestically.

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