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US President Donald Trump imposed tariffs on imported automobiles (again), and one reaction from the UK is to reconsider its policy on electric vehicle subsidies, especially since it is providing so much money to Tesla buyers.
“Tesla has benefited from £188m in UK taxpayer subsidies in nine years,” The Independent writes.
After imposing a 25% tariff on automobiles exported from the UK to the US, it’s quite natural for British people in the auto industry and politicians to say, “Hey, we’re spending hundreds of millions of dollars to subsidise your cars, and now you want to slap a tax on ours? Let’s reconsider how our EV policies work….”
“Chancellor Rachel Reeves said the government is reviewing its electric vehicle transition rules, amid calls for reciprocal tariffs on Tesla imports,” The Independent adds. “The Liberal Democrats have advocated for tariffs on Tesla, citing owner Elon Musk’s support for the US president.”
“Given Musk’s significant backing of Trump, imposing tariffs on Tesla imports would be a fitting response,” a party spokesperson added.
“We should be preparing to respond if needed including through Tesla tariffs that hit Trump’s crony Elon Musk in the pocket,” Liberal Democrat deputy leader Daisy Cooper noted.
The European Union has increased tariffs on electric vehicles produced in China. There are surely ways the UK government (and the EU) could come up with ways to punish Tesla and Elon Musk for their role in an administration that is quite heavily anti-Europe and anti-Earth. The US under Donald Trump is crushing traditional alliances, while only really seeming to align with Russia. Without a doubt, there is momentum building and there are cases to be made for why US automobiles should face some penalties in the US and Europe as well. We’ll see how far things go.
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