Sir Keir Starmer has promised “bold changes” to the rules around electric cars as he set out a series of measures to support British carmakers following Donald Trump’s tariffs.

The prime minister vowed to ensure “home-grown firms can export British cars”, adding that “we must go further and faster in reshaping our economy” because “global trade is being transformed”.

The government says the measures, which form part of their Plan for Change, will give British brands like Rolls-Royce, Vauxhall and Land Rover stability and support.

It comes after a 25% tariff on all foreign cars imported to the US came into force on Thursday.

A further 10% tariff on all British goods imported into America kicked in on Saturday morning, as global markets crashed in the wake of the international trade levies.

Jaguar Land Rover, one of Britain’s biggest carmakers, said it was halting its shipments to the US for four weeks from Monday, while it considers how to adjust to the tariffs.

As part of Monday’s announcement, Starmer will officially reinstate the 2030 ban on the sale of new petrol and diesel cars.

Regulations around manufacturing targets on electric cars and vans will also be altered, to help firms in the transition.

Luxury supercar firms such as Aston Martin and McLaren will still be allowed to keep producing petrol cars beyond the 2030 date, because they only manufacture a small number of vehicles per year.

Hybrid cars, like the Toyota Prius and Nissan e-Power, will also be able to be sold until 2035, which the government says will help ease the transition to zero emission cars.

Petrol and diesel vans will be able to be sold until 2035, as well as all hybrid models.

The government will also make it easier for manufacturers who do not comply with government-mandated sales targets to avoid fines.

From Westminster to Washington DC – our political experts are across all the latest key talking points. Listen to the latest episode below…

“Today I am announcing bold changes to the way we support our car industry,” Starmer said.

“This will help ensure home-grown firms can export British cars built by British workers around the world and the industry can look forward with confidence, as well as back with pride.

“And it will boost growth that puts money in working people’s pockets, the first priority of our Plan for Change.”

Officials have said that support for the car industry will continue to be kept under review as the full impact of the tariffs announced last week becomes clear.

Transport Secretary Heidi Alexander said: “We will always back British business. In the face of global economic challenges and stifled by a lack of certainty and direction for too long, our automotive industry deserves clarity, ambition and leadership. That is exactly what we are delivering today.

“Our ambitious package of strengthening reforms will protect and create jobs – making the UK a global automotive leader in the switch to EVs – all the while meeting our core manifesto commitment to phase out petrol and diesel vehicles by 2030.”

A series of interventions is expected from the government this week, as Starmer pledged to shelter British businesses from the “storm” following Trump’s tariffs.

On Sunday, the prime minister reiterated his disappointment over the tariffs in further calls with world leaders.

Downing Street said that the Prime Minister spoke to European Commission president Ursula von der Leyen, German Chancellor Olaf Scholz and leader of the German Christian Democratic Union party Friedrich Merz on Sunday.

A Downing Street spokesperson said the leaders agreed that following the additional tariffs announced by the US, they all agreed “this is a new era for the global economy”.

“The prime minister reiterated that he was disappointed by the new tariffs and stressed he will continue to act in the UK’s national interest – remaining calm while preparing for all eventualities.

“He updated on his plans to go further and faster to strengthen the UK’s economy and ensure it is as resilient as possible and can withstand these kinds of global shocks. He added that it would be important for the UK to strengthen its trading relationships with others across the globe at the same time.”

Motoring industry body the Society of Motor Manufacturers and Traders (SMMT) has said that “greater action will almost certainly be needed” to safeguard manufacturers, given the tariff changes.

Chief executive Mike Hawes said that “given the potentially severe headwinds facing manufacturers following the introduction of US tariffs, greater action will almost certainly be needed to safeguard our industry’s competitiveness.

“UK-US negotiations must continue at pace, while the long-awaited industrial and trade strategies should prioritise automotive and be delivered at speed.”

The Conservatives have accused the Government of “firing on half cylinders” when support for car makers needs a “full throttle”.

Shadow business secretary Andrew Griffith said: “After nearly a year, Labour’s industrial strategy remains stuck on the grid and the Business Secretary and Chancellor are busy undermining competitiveness in the form of higher taxes and new employment red tape.”

Meanwhile the Liberal Democrats have said that the moves on their own “won’t be enough to protect the sector from the impact of Trump’s damaging taxes”.

Trade spokesperson Paul Kohler said “ministers should also be exploring better incentives for consumers to buy electric vehicles including VAT cuts for public charging and postponing the planned increase in vehicle tax on electric cars.”

Subscribe free to our weekly newsletter for exclusive and original coverage from ITV News. Direct to your inbox every Friday morning.

Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To Know…