Prime Minister Sir Keir Starmer has pledged swift and decisive action to protect British businesses from a growing wave of US tariffs introduced by President Donald Trump, calling the move an “economic storm” that demands urgent industrial policy responses.
Speaking on Sunday, Starmer said his government would not hesitate to intervene in the market to “shelter British business from the storm.”
The statement comes in the wake of a sweeping tariff regime by the United States, which includes a 10% baseline tariff on all imports and a 25% duty specifically targeting automobile imports.
These measures, now in effect, are expected to have significant repercussions for the UK economy—especially the automotive sector, which exported approximately £9bn worth of cars and auto parts to the US in 2024.
In a speech scheduled for Monday in the West Midlands, the prime minister will outline several key responses, including a temporary easing of electric vehicle (EV) sales targets.
While the 2030 ban on new petrol and diesel car sales will remain, the government plans to relax the annual electric vehicle quota requirements, offering the industry more time to adjust.
Commercial van manufacturers will also receive deadline extensions, and low-volume luxury brands such as Aston Martin and Rolls-Royce may continue producing petrol vehicles beyond 2030.
This move is seen as a lifeline for an industry grappling not only with the sudden trade shock from US tariffs but also with long-term challenges in transitioning to electric powertrains.
Beyond the automotive sector, the government is also concerned about the risk of tariff-displaced goods being redirected into the UK market.
Goods originally intended for the US may now seek alternative destinations, potentially undercutting domestic manufacturers with cheaper imports. To address this, officials are exploring anti-dumping safeguards modeled after existing steel import protections.
“These safeguards have been relaxed in recent years but may now need to be re-imposed or strengthened,” said a senior government source.
The Department for Business and Trade is currently working with the Trade Remedies Authority to assess potential risks and recommend measures to defend vulnerable UK industries.
In an effort to inject confidence into the market, a slate of industrial investments previously planned for later in the year may be accelerated.
This includes funding for infrastructure and direct support for key manufacturing sectors, aimed at reinforcing supply chains and preserving jobs.
At the same time, the UK is intensifying its pursuit of alternative trade agreements. India, which was hit with a 26% US tariff, has emerged as a key partner for potential bilateral deals.
Government officials are hopeful that shared pressure from the US tariffs will expedite negotiations with countries that might now be more eager to diversify their trade relationships.
While trade deals typically take years to negotiate, the UK government views the current situation as a crisis that demands accelerated timelines.
“We are facing a significant economic shock,” a Downing Street official said. “This is a moment for action, not delay.”
The coming weeks will test how quickly the UK government can pivot and whether its measures can successfully buffer British industry from the fallout of a deepening global trade dispute.
