- Trump tariffs could hit automakers hard – but will the EU respond?
- ‘No natural demand’ for EVs says Stellantis EU boss
- Carmoola 8th in Sunday Times Tech list
- Dacia wins Dakar Rally
- WEEK AHEAD: UK retail sales
- £100k curse: ‘We don’t want a pay rise’
- Gas prices soar
- Now Germany launches EV subsidy scheme
- Honda dealers on Sony car ‘albatross’
- GUEST OPINION: Retailers can’t sit out the policy debate
Trump tariffs could hit automakers hard – but will the EU respond?
Donald Trump, writing on his Truth Social network, has proposed an additional 10% tariff from February 1 on exports to the US from eight European countries, rising to 25% from June 1, if there is no agreement to trade away Greenland to the US.
This has led French president Emmanuel Macron to call for the EU to activate its most potent trade weapon – its so-called anti-coercion instrument that can restrict access to the single market for US companies. One option being discussed is to hit the US with levies on €93bn of its exports.
EU ambassadors reportedly met today (Sunday) to discuss next steps.
Automotive is set to be in the firing line of Trump’s proposal. “Once again, carmakers will feel the greatest despair,” reports The Sunday Times. Cars are the UK’s biggest export to the US, totalling £10bn in Times 12 months to June 2025.
“A fresh round of aggressive protectionism with our second biggest export market (after the EU) is the last thing manufacturers need – especially when grappling with an influx of cheap Chinese imports and a car-buying public leery of the shift to electric vehicles.
“Bosses will be quietly wondering whether this latest Truth Social bombshell will turn out to be another case of TACO (Trump Always Chickens Out) or just an opening salvo in a spat that will be resolved diplomatically.”
The Sunday Times added it is worth remembering the US Supreme Court is expected to rule soon on whether Trump even had the authority to impose last year’s tariffs.
‘No natural demand’ for EVs says Stellantis EU boss
Emanuele Cappellano, European Stellantis boss, has said there is no “natural” demand for EVs and motorists are unlikely to buy them without hefty discounts, reports The Telegraph.
“In Europe, profit margins are shrinking and are on the verge of becoming negative,” he said. “This is a major concern for us today. There is no natural demand for electric vehicles. Demand only arises when there are subsidies in various countries or when car manufactures reduce prices by burning cash.
“Therefore, trying to increase the market share of electric vehicles only generates losses for car manufacturers.”
EV advocates rejected Cappellano’s claims on Friday, reports The Telegraph, instead blaming inflation for sapping car company profits.
Carmoola 8th in Sunday Times 100 Tech 2026
Digital car finance firm Carmoola has been ranked eighth in the Sunday Times 100 Tech 2026 list. It has seen annual sales growth of 218% over three years. Drivers using its app can expect car finance to be approved in 60 seconds, says the five-year-old startup.
Founders Aidan Rushby, Amy Rushby, Roman Sumnikov and Igor Gordiichuk have secured more than £540m in equity investments and debt facilities. Carmoola netted a turnover of £16m last year.
Dacia wins Dakar Rally
Dacia has won the 48th Dakar Rally. The Dacia Sandrider of Nasser Al-Attiyah and Fabian Lurquin secured victory by almost 10 minutes. It is only Dacia’s second year competing in the Dakar, described as the toughest test in motorsport.
The Land Rover Defender Rally, based on the Defender Octa, also won the ‘Stock’ category in its debut year.
WEEK AHEAD
Wednesday, CPI and RPI
Thursday: public sector net borrowing
Friday, UK retail sales
Friday, GFK consumer confidence
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DATA INSIGHT
£100k curse: ‘We don’t want a pay rise’
650,000: Number of taxpayers who will earn between £100k-£125k this year, tipping over “one of the most punitive cliff-edges in the tax system”. It imposes a marginal tax rate of 62% and sees parents lose their entitlement to tax-free childcare. Some are now refusing pay rises.
Gas prices soar
40%: Increase in wholesale natural gas prices this month. It threatens to raise energy bills when the next energy price cap review takes effect in April. The government says eradicating gas price volatility is a major reason behind its push for a renewables-based energy system.
GLOBAL AUTO
Now Germany launches EV subsidy scheme
Germany is set to offer subsidies worth up to €6,000 (£5,200) for electric vehicles. The €3bn (£2.6bn) scheme is enough for around 800,000 cars. It will target low- to middle-income households – subsidies start at €1,500 (£1,300) and the size of subsidy depends on the vehicle and a family’s size and earnings.
Honda dealers on Sony car ‘albatross’
US Honda dealer council chief Bill Fienstein has described the Honda Sony Mobility venture as “an albatross” and “poorly conceived from the start”. Dealers now want Honda to cut its losses in the Afeela EV program to avoid draining resources from the core Honda business. Deliveries of the Tesla-challenging Afeela 1 are scheduled to begin in late 2026.
OPINION
GUEST OPINION: Retailers can’t sit out the policy debate
As the automotive retail sector looks ahead to 2026, engagement with policymakers remains of the utmost importance to ensure that regulation reflects the practical realities of the industry. Ongoing challenges, including the ZEV Mandate, EV taxation, a growing skills shortage and more mean that constructive dialogue between the Government and dealers is essential.
Through the NFDA’s Parliamentary Engagement Programme, I encourage dealers to engage directly with MPs, often by hosting visits at their own dealerships. These meetings give MPs the opportunity to gain a clearer understanding of how policy decisions affect businesses and consumers.
Our industry employs around 600,000 people across the UK, spanning a wide range of roles far beyond the common misconception of “working in a garage”, and plays a vital role in the economy. By engaging directly with MPs, dealers can help contribute with NFDA that future policy is well informed. From my experience, at these meeting often MPs may not fully appreciate the gravity of the issues affecting our sector until they have the opportunity to speak directly with chief executives and employees, enabling a more informed understanding.
I have mentioned some of the vital issues we discuss in these meetings. However, we also touch on topics such as the next steps for the Financial Conduct Authority’s redress scheme, the availability of charging infrastructure and we also continue to raise outstanding automotive issues affecting Northern Ireland post Windsor Framework.
I feel very strongly about the importance of this collaborative approach. By working together through the NFDA, dealers can ensure their voices are heard more clearly and with greater impact. Addressing these complex issues is most effective when the Government hears a unified voice across the sector. Please contact me, or a member of the NFDA team, if you would like to get involved or are hesitant.
Sue Robinson
Chief Executive, NFDA
Get in touch: lena.patel@rmif.co.uk
ISSN 2977-6597