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US takes action against customs duties: Support for electric vehicle manufacturers from the UK

In an effort to alleviate the increasing pressures in the automotive sector due to the new customs tariffs imposed by the US, the UK has decided to relax its rules regarding manufacturers transitioning to electric vehicle production. According to a statement from the UK Prime Minister’s Office and the Department for Transport, among the government’s new measures for the automotive sector are the reduction of fines for car manufacturers that do not meet electric vehicle sales targets, and exemption of micro-volume producers mainly producing luxury vehicles from these fines. There will be no change in the “phased exit” date planned until 2030 for new petrol and diesel cars, but under the new measures, the sale of full hybrids will be allowed until 2035. UK Prime Minister Keir Starmer stated on his social media account that they have announced significant changes in order to support British businesses, providing manufacturers with the stability and support they need. Transport Minister Heidi Alexander mentioned that the US customs tariffs have expedited the government’s ongoing consultation process regarding electric vehicle regulations. US President Donald Trump had announced on March 27 that a 25% customs duty would be applied to all cars not produced in the US. While the majority of UK car exports to the US include luxury car models, around $10 billion worth of car exports were made to the US last year.

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