Trump News- UK Car Firms Seek Government Support Amid Looming Trump Tariffs
As hopes for a resolution with US President Donald Trump fade, UK car manufacturers are calling on the government for support. The concern arises from the upcoming 25% tariffs on US car imports, set to take effect from April 3, 2025.
Government Engagement with Car Firms on Trump News
On Friday morning, representatives from various UK car firms met with Industry Minister Sarah Jones to discuss their response to the looming tariffs. According to sources, the government is still attempting to secure exemptions from a wide range of US import levies. However, with just days left before the tariffs come into force, some companies fear it may be too late to halt the measure.
During the meeting, car firms voiced their concerns, highlighting the challenges posed by the new tariffs, which come on top of existing pressures such as the Zero Emissions Vehicle (ZEV) mandate. Insiders described the meeting as “well-attended,” with consensus on the need for the government to strive for a deal. However, the government remained in “listening mode” without offering concrete solutions.
Economic Impact and Strategic Concerns
The potential tariffs could significantly impact the UK economy. Official forecasts estimate that in a worst-case scenario, the taxes could reduce economic growth by 1%, effectively erasing the £9.9 billion fiscal headroom planned by Chancellor Rachel Reeves.
Government sources maintain that there is still a chance to negotiate a deal, but Treasury Minister Darren Jones emphasized the complexity of the situation, stating that the UK must adopt a “different approach” compared to other nations. Despite being “disappointed” by the tariff decision, the UK government remains pragmatic, underscoring the importance of the US as an “indispensable ally.”
Global Reactions and Industry Worries
Unlike the UK’s pragmatic stance, other countries have reacted more aggressively. Germany has vowed not to back down, and both France and Canada have threatened trade retaliation. Canada’s Prime Minister Mark Carney, formerly the Bank of England governor, even declared the long-standing Canada-US relationship “over.”
Car manufacturers around the globe, including US-based companies like General Motors, Ford, and Tesla, have experienced significant share price declines since the tariffs were announced. Ineos Automotive, a UK start-up with manufacturing in the EU, described the tariffs as a “significant threat,” given the US’s status as its biggest market.
The Future of UK Car Exports
Vehicles remain the UK’s most significant export to the US, with 101,000 cars shipped last year, valued at £9 billion. As the government consults on potential support measures, including changes to the ZEV mandate, industry leaders continue to push for solutions that will mitigate the disruption.
While talks between the UK and US administrations continue, the outcome ultimately rests in the hands of President Trump. Although he recently ruled out exemptions for car imports, global negotiations are ongoing regarding broader “reciprocal tariffs.”
(Disclaimer: The above article is meant for informational purposes only, and sis based on a report by BBC news service. FINOSTRY suggests its readers/audience to consult their financial advisors before making any money related decisions.)