Vehicle makers may ‘review output’ because of US tariffs, industry says

UK vehicle manufacturers may be forced to “review output in the face of constrained demand” because of Donald Trump’s tariffs, an industry body has warned.

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), described the US president’s announcement as “deeply disappointing and potentially damaging”.

Mr Trump has imposed a 10% tariff on US imports of UK goods, rising to 25% for cars.

The US is the second largest export market after the European Union for cars built in the UK.

Some 16.9% of UK car exports were to the US last year, representing a total of more than 101,000 units worth £7.6 billion.

A report by think tank the Institute for Public Policy Research published on Wednesday warned more than 25,000 UK car manufacturing jobs could be at risk because of US tariffs.

Researchers warned that employees at Jaguar Land Rover and Mini are “some of the most exposed”.

Mr Hawes said: “The announced imposition of a 10% tariff on all UK products exported to the US, whilst less than other major economies, is another deeply disappointing and potentially damaging measure.

“Our cars were already set to attract a punitive 25% tariff overnight and other automotive products are now set to be impacted immediately.

“While we hope a deal between the UK and US can still be negotiated, this is yet another challenge to a sector already facing multiple headwinds.

“These tariff costs cannot be absorbed by manufacturers, thus hitting US consumers who may face additional costs and a reduced choice of iconic British brands, whilst UK producers may have to review output in the face of constrained demand.

“Trade discussions must continue at pace, therefore, and we urge all parties to continue to negotiate and deliver solutions which support jobs, consumer demand and economic growth across both sides of the Atlantic.”