Trump’s tariffs and their potential impact on the UK EV market
With President Trump once again making headlines, this time over new trade tariffs, questions are being raised about what this could mean beyond the US, including here in the UK and for the electric vehicle (EV) market.
On Truth Social, President Trump announced new 10% tariffs on all goods exported to the US from several European countries, including the UK, Germany, France, Sweden, Denmark, Norway, the Netherlands and Finland. These will come into effect on 1 February 2026.
President Trump has warned that tariffs will increase to 25% from 1 June 2026, unless a deal is reached for the US to purchase Greenland from Denmark.
Experts are warning that the UK manufacturing sector could face serious challenges if these tariffs come into force, with the car industry among those most exposed.
Why does this matter for EVs?
The UK’s EV market is closely tied to international supply chains. Many vehicles built in the UK, including electric and hybrid models, are exported to the US, while components and technologies are traded back and forth across borders.
A higher tariff on UK-built cars exported to the US could:
Increase costs for manufacturers
Reduce the competitiveness of UK-made EVs in the US market
Put pressure on UK production and long-term investment
That matters because a strong manufacturing base supports innovation, job creation, and EV adoption at home.
A historic trade deal could soften the blow for UK carmakers
There is, however, an important piece of context. In June 2025, Prime Minister Keir Starmer and President Trump announced a landmark trade deal designed to offset the impact of a 25% tariff on automotive imports to the US.
Under the agreement, UK car export tariffs dropped from an effective 27.5% to just 10%. The reduced rate applies to up to 100,000 cars exported to the US.
At the time, Sir Keir Starmer described the agreement as a “historic trade deal” that would protect jobs and support growth across the UK.
“From today, our world-class automotive and aerospace industries will see tariffs slashed, safeguarding key industries that are vital to our economy,” the Prime Minister said.
If upheld, this deal could help cushion UK carmakers, including EV manufacturers, from the worst impacts of the proposed tariff increases.
What could this mean for UK EV drivers?
In the short term, UK EV drivers are unlikely to see immediate changes to prices or availability as a direct result of these announcements.
However, longer term:
Uncertainty among car manufacturers can slow new EV model rollouts
Increased costs may affect investment decisions
Supply chain pressures could increase vehicle pricing
That’s why trade stability matters, not just for manufacturers, but for the pace of the UK’s transition to electric driving.
The bigger picture
The UK’s EV future depends on trade certainty, strong manufacturing, and continued investment in charging infrastructure. While Trump’s tariffs don’t directly target UK consumers, they can still shape the wider ecosystem that EVs rely on.
As the situation develops, the key question will be whether existing trade agreements are honoured, and whether further negotiations can prevent disruption to one of the UK’s most important growth industries.
For drivers, the long-term direction remains clear: electric is here to stay, and the infrastructure needed to support it is moving ever forward.