
President Donald Trump has announced plans to impose a 25% tariff on imported cars and car parts, with vehicle tariffs commencing on April 2 and additional charges on parts expected in May. This move has raised concerns within the UK government and automotive industry.
Chancellor Rachel Reeves emphasized the close economic ties between the UK and the US, noting that a million British people are employed by American firms, and a million Americans work for British companies. She stated that the government is engaged in extensive discussions with US officials to protect trade between the two nations.
"A million British people are employed by American companies, and a million Americans work for British businesses. Our economies are deeply connected,"
"We firmly believe— and continue to express to the United States— that free and fair trade benefits both our countries. We will see how discussions unfold in the coming days."
Automotive Industry Calls for Negotiations
The Society of Motor Manufacturers and Traders (SMMT) expressed disappointment over the announcement. SMMT Chief Executive Mike Hawes highlighted the longstanding and productive relationship between the UK and US auto industries, with US consumers enjoying vehicles built in Britain by iconic brands and thousands of UK motorists purchasing American-made cars. Hawes urged both sides to explore mutually beneficial opportunities that would support manufacturers, benefit consumers, and create jobs and growth across the Atlantic
The UK automotive industry is particularly concerned about the potential impact of these tariffs, as the US is Britain's second-largest car export market. The implementation of these tariffs could disrupt trade and affect jobs in both countries.
"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.
The industry urges both sides to come together immediately and strike a deal that works for all."
Mike Hawes, SMMT Chief Executive
Leave a Comment