Rachel Reeves has considered the role Tesla plays in the future of the UK's electric vehicle market after President Donald Trump's announcement of 25 per cent tariffs on foreign vehicle imports.
The US President announced last night that he would introduce a new 25 per cent tariff on the import of foreign cars, which will come into effect on April 2.
Experts have warned that the looming threat of a global trade war could have disastrous consequences for motorists with higher prices and manufacturers slapped with expensive import costs.
Speaking this morning, Chancellor Rachel Reeves said that the UK was not planning retaliatory tariffs on the United States "at the moment" but would be looking to secure a better trading relationship.
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She clarified that free trade was good for the UK and the US, with the two economies closely intertwined. The MP for Leeds West and Pudsey added that further talks were taking place today.
Speaking to BBC Radio 4's Today programme, the Chancellor said: "We don't want to get into a trade war, but we are looking at the Zero Emission Vehicle mandate, which is, I think, why some of that money goes to Tesla, and looking at how we can better support the car manufacturing industry in the UK.
"We announced in the Budget last year, I think, around £2billion for an automotive fund as part of our modern industrial strategy.
"But look, we are working intensely with the US to try to come to an agreement ahead of these tariff increases next week. Let’s see how that goes."
Data from analysts Trussell found that Tesla received £188million in taxpayer subsidies from the Department for Transport since 2016 through the Plug-in Car Grant.
While this was ended in June 2022, the PiCG helped boost sales of electric vehicles from less than 1,000 in 2011 to almost 100,000 in the first five months of 2022.
Data from the Society of Motor Manufacturers and Traders (SMMT) shows that Tesla has sold 5,310 vehicles so far this year, accounting for 2.38 per cent of the total market share.
It also represents an impressive 11.25 per cent increase compared to the 4,773 new vehicles registered at the same time last year, when it had a market share of 2.1 per cent.
Daisy Cooper, deputy leader of the Liberal Democrats, also targeted Tesla and Elon Musk, saying that the tariffs would hammer British industry.
She said: "Our car industry is being left at the mercy of Trump and his destructive trade war. We should be preparing to respond if needed including through Tesla tariffs that hit Trump’s crony Elon Musk in the pocket."
Tesla has come under the microscope from MPs in recent months after founder and CEO Elon Musk aligned himself with President Donald Trump and other right-wing political groups like Reform UK and Alternative für Deutschland (AfD).
Liberal Democrat leader Sir Ed Davey previously called on Keir Starmer to coordinate with the European Union and Canada to launch tariffs on Tesla if Trump "ignited a trade war".
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In response to the tariffs, Musk took to his own social media site X, formerly known as Twitter, saying that Tesla was "not unscathed" and described the tariff as "significant".
He added: "This will affect the price of parts in Tesla cars that come from other countries. The cost impact is not trivial."
Find Out More...
The US President announced last night that he would introduce a new 25 per cent tariff on the import of foreign cars, which will come into effect on April 2.
Experts have warned that the looming threat of a global trade war could have disastrous consequences for motorists with higher prices and manufacturers slapped with expensive import costs.
Speaking this morning, Chancellor Rachel Reeves said that the UK was not planning retaliatory tariffs on the United States "at the moment" but would be looking to secure a better trading relationship.
Do you have a story you'd like to share? Get in touch by emailing [email protected]
She clarified that free trade was good for the UK and the US, with the two economies closely intertwined. The MP for Leeds West and Pudsey added that further talks were taking place today.
Speaking to BBC Radio 4's Today programme, the Chancellor said: "We don't want to get into a trade war, but we are looking at the Zero Emission Vehicle mandate, which is, I think, why some of that money goes to Tesla, and looking at how we can better support the car manufacturing industry in the UK.
"We announced in the Budget last year, I think, around £2billion for an automotive fund as part of our modern industrial strategy.
"But look, we are working intensely with the US to try to come to an agreement ahead of these tariff increases next week. Let’s see how that goes."
Data from analysts Trussell found that Tesla received £188million in taxpayer subsidies from the Department for Transport since 2016 through the Plug-in Car Grant.
While this was ended in June 2022, the PiCG helped boost sales of electric vehicles from less than 1,000 in 2011 to almost 100,000 in the first five months of 2022.
Data from the Society of Motor Manufacturers and Traders (SMMT) shows that Tesla has sold 5,310 vehicles so far this year, accounting for 2.38 per cent of the total market share.
It also represents an impressive 11.25 per cent increase compared to the 4,773 new vehicles registered at the same time last year, when it had a market share of 2.1 per cent.
Daisy Cooper, deputy leader of the Liberal Democrats, also targeted Tesla and Elon Musk, saying that the tariffs would hammer British industry.
She said: "Our car industry is being left at the mercy of Trump and his destructive trade war. We should be preparing to respond if needed including through Tesla tariffs that hit Trump’s crony Elon Musk in the pocket."
Tesla has come under the microscope from MPs in recent months after founder and CEO Elon Musk aligned himself with President Donald Trump and other right-wing political groups like Reform UK and Alternative für Deutschland (AfD).
Liberal Democrat leader Sir Ed Davey previously called on Keir Starmer to coordinate with the European Union and Canada to launch tariffs on Tesla if Trump "ignited a trade war".
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In response to the tariffs, Musk took to his own social media site X, formerly known as Twitter, saying that Tesla was "not unscathed" and described the tariff as "significant".
He added: "This will affect the price of parts in Tesla cars that come from other countries. The cost impact is not trivial."
Find Out More...