Car industry braced for impact of Trump’s 25% import tariffs
UK motor industry bosses today (March 27) called for immediate high level talks to protect the country’s car plants after US President Trump announced 25% tariffs on all vehicles imported into the US.
They branded the move – due to come into effect next Wednesday – “disappointing” while analysts fear it could be hugely damaging for an industry already battling falling sales and rising production costs.
The Society of Motor Manufacturers and Traders (SMMT) said it wanted to see a “mutually beneficial relationship” between the US and UK auto industries.
The US is Britain’s second largest car export market after the EU, worth around £7.6bn.
Last year UK car plans shipped more than 101,000 vehicles – mainly premium and luxury cars – to the US, representing just under 17% of all car exports.
The US represents the largest sales market Jaguar Land Rover (JLR), which employs around 11,000 people in the UK, primarily at its manufacturing sites in Solihull, Castle Bromwich and Halewood, Merseyside and its product engineering centre and head office in Gaydon.
US import tariffs would also hit German car giant BMW’s three UK plants – Oxford, Swindon and Hams Hall, near Birmingham – which employ a total of around 8,000 people and are mainly involved in Mini production.
The iconic British marque has been a strong seller in the US. Nearly 26,300 Minis were sold in the US last year.
Despite being a fall on the 33,497 sold in 2023 due to a planned model changeover and the launch of a new product portfolio, the US remains an important market for the Mini.
Stellantis, the parent company of Vauxhall, will next month close its 120-year-old Luton van factory and relocate production to its Ellesmere Port plant in Cheshire, where it employs more than 1,000 people.
Ellesmere Port, the UK’s first electric vehicle-only manufacturing facility, produces compact electric vans, including the Citroën ë-Berlingo, Vauxhall Combo Electric, Opel Combo Electric, Peugeot E-Partner and Fiat Professional E-Doblo.
Japanese car giant Toyota employs around 3,000 people at its vehicle manufacturing plant at Burnaston, near Derby – where it produces the Corolla Hatchback and Corolla Touring Sports models – and an engine plant on Deeside, North Wales.
The UK’s largest car production site is Nissan’s plant at Sunderland where it employs around 6,000 people building the Qashqai, Juke and electric Leaf hatchback models. Last year the plant exported around 73,500 cars to the US, just over 10% of its total output.
The UK motor industry provides work for around 813,000 people, with almost 200,000 employed directly in manufacturing.
The SMMT said the UK and US auto industries had a long-standing and productive relationship, “with US consumers enjoying vehicles built in Britain by some iconic brands, while thousands of UK motorists buy cars made in America”.
It added: “Rather than imposing additional tariffs, we should explore ways in which opportunities for both British and American manufacturers can be created as part of a mutually beneficial relationship, benefitting consumers and creating jobs and growth across the Atlantic.”
It urged both sides to come together immediately and “strike a deal that works for all”.
Asked about the tariffs in media interviews this morning, Chancellor Rachel Reeves said “extensive talks” with taking place with the US to protect trade between the countries.
