British Prime Minister Keir Starmer is preparing to water down electric vehicle targets and ease other environmental regulations as his government scrambles to protect British industry from Donald Trump’s sweeping tariffs.
Downing Street officials confirmed plans to loosen green mandates on automakers are being accelerated after Trump imposed a 10 percent baseline tax on all UK imports to the United States, with additional 25 percent levies targeting the automotive sector.
“The immediate priority is to keep calm and fight for the best deal,” Starmer wrote in The Sunday Telegraph, as the government faces mounting pressure to shield domestic manufacturers. Jaguar Land Rover, which generates nearly a quarter of its sales in America and employs 38,000 people in the UK, has already paused all shipments to the US in response to the tariffs.
The move to relax environmental targets marks a significant pivot for the Labour government, which has trumpeted its commitment to green policies since taking office. But officials now acknowledge the urgent need to boost economic competitiveness as global trade tensions escalate.
“When global economic sands are shifting, our laser focus on delivering for Britain will not change,” Starmer declared, signaling a new pragmatism in his approach to climate regulations. “The government will do everything necessary to protect Britain’s national interest.”
Chancellor Rachel Reeves is expected to announce a series of emergency measures this week, including changes to electric vehicle regulations and an acceleration of Labour’s industrial strategy. The chancellor will also reportedly visit India to accelerate progress on a trade deal, while officials work to strike an agreement with Australia.
The prime minister has characterized the current moment as transformative for global trade. “The world as we knew it has gone. Old assumptions can no longer be taken for granted,” Starmer wrote, describing a “new world” governed by “deals and alliances” rather than rules.
Ministers have been reluctant to directly criticize the Trump administration, with Britain still hoping to secure a favorable trade agreement that could reduce or eliminate the new tariffs. British negotiators had reportedly been close to reaching a deal with Washington even before Trump announced the across-the-board tariff hikes last Wednesday, with officials offering concessions on imported American beef and fish.
Barclays has already cut its UK growth forecast for this year from 0.7 percent to 0.5 percent, while JP Morgan warns there is now a 60 percent chance of a global recession.
For Starmer, the crisis presents both danger and opportunity. His pledge to “turbocharge plans” to improve Britain’s competitiveness suggests the government will use the tariff shock to justify sweeping deregulation that might otherwise have faced resistance.
“These new times demand a new mentality,” the prime minister said. “We stand ready to use industrial policy to help shelter British business from the storm.”
The government’s plans could mark the end of a period where climate commitments were treated as sacrosanct in British politics. With economic pressures mounting, environmental targets now appear subject to the same cost-benefit analysis as other policy areas.
Industry leaders have welcomed the government’s pragmatic approach, with many arguing that UK businesses cannot shoulder the dual burden of American tariffs and aggressive climate regulations. As one Downing Street official bluntly acknowledged, “Trump has done something that we don’t agree with but there’s a reason why people are behind him on this.”
