Friday, April 18, 2025

After Trump's tariffs: Fossil cars make an unexpected comeback

Hybrid cars and combustion engines are getting a longer life in England due to new export barriers from the United States.

Britain is changing course on its green car plan. In direct response to US President Donald Trump's tariff war, hybrid cars and vans with combustion engines will be able to be sold in the country for longer.

The so-called Zero Emission Vehicle (ZEV) Mandate was supposed to have banned the sale of new fossil-fuel cars as early as 2030.

But the new rules mean that manufacturers will have more time to adapt – and so will British car buyers.

President Trump has imposed a 25 percent tariff on cars exported to the United States. Britain exported more than 100,000 cars to the American market last year – including from Jaguar Land Rover (JLR), which has production plants throughout England.

New US tariffs put a strain on the British car industry

In light of the new tariffs, JLR has chosen to pause its shipments to the US while assessing the consequences. A spokesperson confirmed this to the press:

“The US is an important market for JLR’s luxury brands. We are taking short-term steps and have chosen to pause shipments in April while we develop our plans for the near future”

The updated rules just published by the British government mean that hybrid cars such as the Toyota Prius and Nissan e-Power cars will be allowed to be sold for another five years.

Hybrid cars will have an extended lifespan until 2035

Vans with combustion engines and plug-in hybrid vans will also continue to be sold until 2035.

At the same time, small manufacturers such as Aston Martin and McLaren will be exempt from certain requirements during the transition phase.

Minister of Transport Heidi Alexander says in an official statement:

“Our car industry deserves clarity, ambition and leadership. It gets it now. We are protecting jobs and making the UK a global leader in the transition to electric cars”

Billion-dollar investments and more charging stations in England

The UK will support the transition with economic incentives.

The government has already allocated 2.3 billion pounds (equivalent to 24.5 billion kroner) for green transition, production and expansion of charging infrastructure.

The country already has over 75,000 charging stations, and according to the authorities, one new one is added every 29 minutes.

Energy and Climate Secretary Ed Miliband says:

“The plan will strengthen our own car production and make it cheaper for consumers to drive electric cars. We are determined to seize this global opportunity”

Electric car sales continue, but the market is becoming broader

In 2024, the UK had the largest electric car sales in Europe and was number three globally, with more than 382,000 electric cars sold.

However, with the new rules, the market will become broader – especially for plug-in hybrid cars, which still count as partly electric and do not emit as much CO₂ – especially on short trips.

The British automotive industry employs over 150,000 people and generates an annual value of almost 170 billion kroner. Therefore, economic stability also weighs heavily in the new legislation.

Prime Minister Keir Starmer emphasizes that the change is not an abandonment of climate goals:

“We are not changing course to go backwards, but to ensure that going forward we can export British cars made by British workers to the world. It is about action, not words.”

The UK government maintains its target of reducing total emissions by 68 percent by 2030 and reaching net zero by 2050.

But with Trump's new tariffs, the pace has now slowed down a bit – and hybrid cars have a new and longer future in the UK.

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