UK car industry to lose ‘1000’s’ of jobs as | Tech News
A motoring knowledgeable has warned that the UK car industry might lose out on billions of kilos yearly due to new tariffs imposed by US President Donald Trump.
It was one of Mr Trump’s key pledges all through the build-up to the American Presential Election in 2024, and now the US Government just lately confirmed plans to introduce a 25 % tariff on imported fashions.
Tom Jervis, Consumer Reporter for the motoring publication Auto Express, said that, regardless of being predicted, the introduction of the tariff might hurt demand for UK-made automobiles in America.
He defined: “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, but don’t let that downplay how much of a blow this has the potential to be for the UK car industry.
“Last yr, more than £8 billion price of automobiles had been imported to the States from the UK, which accounts for round 14% of all of our exports to the USA.”
According to data from the Society of Motor Manufacturers and Traders (SMMT), around 110,000 cars produced in the UK were exported to America in 2024 – accounting for 14% of the country’s total.
However, the tariff imposed by President Trump will make these models more expensive for American motorists to buy, encouraging many to buy cheaper alternatives that are made in the USA.
The move comes at an already competitive time for the UK automotive industry, thanks in part to the increasing number of imported models coming from China and issues surrounding the Government’s ZEV (Zero-Emission Vehicle) Mandate.
Tom noted that stronger bonds with America could see the tariffs lifted; however, additional support to the car industry is even more vital.
He added: “These tariffs from Trump might, in a very worse-case state of affairs, see UK factories close in favour of new services being opened up within the US, ensuing within the loss of a whole lot and even 1000’s of jobs. In flip, this may even impression the UK financial system, that means that everybody will probably be worse off as a outcome.
“Keir Starmer now has the unenviable task of cosying up to Trump to avoid some form of trade war. 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.”
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