Trump’s Tariffs: UK Changes Zero Emission Vehicle Rules

Road transport remains the UK's highest greenhouse gas-emitting sector, accounting for 28% of the country's emissions in 2022.

The country aims to reduce total emissions by 68%, aiming for net zero by 2050, so road transport emissions must reduce to meet these.

The UK government has changed its Zero Emission Vehicle (ZEV) Mandate in the face of US President Donald Trump’s tariffs of 25% on cars imported to the US. 

The changes will permit the sale of hybrid vehicles until 2035, offering exceptions to small manufacturers.

Previously, the government aimed for all new car sales to be electric by 2030.

The amended rules now also include allowances for vans with internal combustion engines and plug-in hybrid light commercial vehicles to be sold until 2035.

Prime Minister Keir Starmer said: “Global trade is being transformed so we must go further and faster in reshaping our economy and our country through our Plan for Change.

“I am determined to back British brilliance. Now more than ever UK businesses and working people need a government that steps up, not stands aside.

“That means action, not words. 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 impact of ZEV Mandate changes

The changes follow a consultation initiated by the Department for Transport in December 2024 which concluded in February.

The previous mandate set out percentages of sales that EVs must make up to 2030, but these are being made more flexible so that more cars can be sold in later years. 

Hybrid models, like the Toyota Prius and Nissan e-Power, will be available for sale until 2035, allowing the industry more time to adapt.

The government promises tax incentives valued at hundreds of millions to support the transition to EVs and sustain demand.

This is on top of £2.3bn (US$2.9bn) being spent on boosting British manufacturing and improving charging infrastructure. 

Small manufacturers, like McLaren and Aston Martin, will be exempt from the mandate targets.

Transport Secretary Heidi Alexander said: “We will always back British business. 

“In the face of global economic challenges and stifled by a lack of certainty and direction for too long, our automotive industry deserves clarity, ambition and leadership. That is exactly what we are delivering today.

“Our ambitious package of strengthening reforms will protect and create jobs – making the UK a global automotive leader in the switch to EVs – all the while meeting our core manifesto commitment to phase out petrol and diesel vehicles by 2030.”

The UK’s automotive sector

Employing more than 150,000 people, the UK automotive industry significantly contributes to the economy, generating £19bn ($24.5bn) annually.

The UK held the largest EV market share in Europe in 2024, ranking third globally, with more than 382,000 EVs sold.

The nation's public charging infrastructure boasts more than 75,000 chargepoints, with a new one added every 29 minutes.

Energy Secretary Ed Miliband said: “It is very important that the government has strengthened our commitment to our world leading EV transition plan.

“This plan will benefit UK consumers by expanding the market for cars that are cheaper to run. And it will support our domestic manufacturing so we can seize this global opportunity.”

In 2024, the UK exported more than 100,000 cars to the US, so President Trump’s 25% tariff could hit hard. 

JLR, the manufacturer of Jaguar, Land Rover and Range Rover car brands, is based in Coventry and has manufacturing sites across England. 

Exports to the US account for nearly a quarter of its total sales. 

The company has said it will pause shipments to the US as it considers how to mitigate the cost of the tariffs.

A JLR spokesperson said: “The USA is an important market for JLR’s luxury brands. 

“As we work to address the new trading terms with our business partners, we are enacting our short-term actions including a shipment pause in April, as we develop our mid to longer-term plans.”

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