Trump previously announced a 25% tax will be introduced on all cars imported to the USA. Auto Express is urging the government to support the UK automotive industry which is “the backbone for the nation’s manufacturing sector” in a “service-based economy”.
Tom Jervis consumer reporter at Auto Express said: “The writing has been on the wall for a while now when it comes to President Trump imposing some kind of tariff on automotive imports into the US; he threatened last week that it could be as high as 25%. And while we were hopeful that the UK could carve out a deal before duties were imposed, today has the potential to be a huge blow to the nation’s struggling car industry.
“Last year, roughly £9 billion worth of cars were imported to the States from the UK, which accounts for around 15 per cent of all of our exports to the USA. However, tariffs go beyond just the automotive industry as studies have estimated blanket tariffs could see global UK exports fall by as much as 2.6 per cent – that may seem like a small figure, but we’re talking about losses of tens of billions of pounds.
“Ultimately, however, it’s the blue-collar worker and consumer that will be affected the most; despite being our biggest export, the UK automotive manufacturing sector is already struggling due to fallout from the tough ZEV mandate and increased competition from abroad – particularly from China.
“These tariffs from Trump could, in a very worse-case scenario, see UK factories close in favour of new facilities being opened up in the US, or perhaps more likely, instigate hundreds or even thousands of job losses as firms scramble to cut manufacturing costs further. Either way, this will also impact the UK economy, meaning that everyone will be worse off as a result.
“As international talks continue, all we ask is that the government supports the UK automotive industry, as it’s the backbone for the nation’s manufacturing sector in an age where we have effectively become a service-based economy.”
