Tesla 'S significant UK taxpayer subsidies have faced increased examination following Donald Trump 's announcement of a 25 percent tariff on cars brought into the US .
Chancellor Rachel Reeves The government is currently examining its regulations for the electric vehicle transition, following demands for retaliatory tariffs on Tesla imports.
The Liberal Democrats have pushed for tariffs on Tesla, pointing out the concerns of ownership. Elon Musk 'S backing of the U.S. President.
A party representative stated, 'Considering Musk’s considerable support for Trump, levying tariffs on Tesla imports would serve as an appropriate retaliation.'
According to data released by analysts Tussell in January, Tesla has received £188 million in UK government support since 2016, mainly via the plug-in car grant program.
The program provides monetary rewards for buying low-emission vehicles.
Mrs. Reeves informed BBC Radio 4’s Today Program: "While we aim not to initiate a trade war, we are examining the zero-emission vehicle mandate. This could be part of the reason certain funds go to Tesla. Additionally, we're exploring ways to enhance our support for the automotive manufacturing sector in the UK."
We mentioned in last year's budget, I believe, approximately £2 billion earmarked for an automotive fund as part of our contemporary industrial strategy.
“But look, we are working closely with the US To attempt reaching an agreement before these tariff hikes take place next week. We'll have to wait and see how that unfolds.
A 25 percent tariff on cars and car components brought into the U.S. will take effect starting April 2nd.
Daisy Cooper, the deputy leader of the Liberal Democrats, stated: "Our automobile sector is being abandoned to face Trump and his damaging trade conflict."
We ought to get ready to react if necessary, which could include implementing Tesla tariffs aimed at affecting Donald Trump's associate Elon Musk financially.
Mr. Musk stated that tariffs will "influence the cost of components in Tesla vehicles sourced from other nations," noting that the "financial impact is significant."
This statement came as a reply to a post on the social media platform X, which he owns, suggesting that Tesla "could benefit the most" from import tariffs imposed on products coming into the U.S.
When President Trump took office in January, he designated Mr. Musk to lead an initiative aimed at reducing government expenses. the recently created Department of Government Effectiveness .
Data provided by the Society of Motor Manufacturers and Traders indicates that the Tesla Model Y ranked as the fifth most registered new vehicle in the UK for 2024, with 32,862 units sold.
The Independent has consistently maintained a worldwide viewpoint. Rooted in strong foundations of exceptional international journalism and analysis, The Independent now boasts a readership that would have been unimaginable at its launch as a newcomer in the UK media landscape. In the post-World War II era, for the first time globally, principles such as pluralism, rational thinking, progressive and compassionate approaches, along with international cooperation—values upheld by The Independent—are facing challenges. Despite this, our publication continues to expand.