Reacting to the imposition of tariffs, a JLR spokesperson said: “Our luxury brands have global appeal and our business is resilient, accustomed to changing market conditions. Our priorities now are delivering for our clients around the world and addressing these new US trading terms.”
Headed up by Prime Minister Keir Starmer and Business Secretary Jonathan Reynolds the UK government had hoped to secure a deal to spare UK-based manufacturers of the burden of such hefty tariffs. However, despite some positive-sounding rhetoric at the beginning of the negotiation process, the UK was unable to secure a deal in time, beyond that of only invoking the 10 per cent “baseline” tariff for non-automotive goods.
Around half of the 16 million cars sold annually in the US are imported, and the Trump administration believes the imposition of tariffs will lead to more foreign brands investing in US factories; the President previously stated that “If [cars are] made in the United States, there’s absolutely no tariff.”
With this in mind, many manufacturers will be looking to invest in factories within the US in order to dodge import duties, something that could result in thousands of job losses in the UK. Bailey told Auto Express that the West Midlands is likely to be the area of the country most affected, given this is where many large firms such as JLR have their factories.
Chief executive of the UK’s Society of Motor Manufacturers and Trader, Mike Hawes, described the situation as “yet another challenge to a sector already facing multiple headwinds”.
Hawes warned that these tariffs “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.”
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