New analysis from the Institute For Public Policy Research (IPPR) warns that over 25,000 UK car manufacturing jobs could be at risk if US President Donald Trump’s planned 25% import tariffs are implemented.
The US is the second-largest export market for UK-built cars, after the EU, accounting for 16.9% of exports last year, equating to over 101,000 units worth £7.6 billion. The IPPR warns these tariffs could “completely destabilise” the UK car manufacturing industry, particularly impacting employees at Jaguar Land Rover and Mini.
The IPPR suggests the UK should capitalise on the transition to net zero by focusing on manufacturing “green planes, trains and automobiles”. They advise the government to use its upcoming industrial strategy to stimulate domestic demand for these products. This includes incentives for UK-made electric cars, reduced VAT on public charging, and grants for low-income buyers.
Pranesh Narayanan, IPPR research fellow, said, “Trump’s tariffs have huge potential to completely destabilise the UK car manufacturing industry, affecting tens of thousands of jobs and putting the Government’s growth plans at jeopardy. However, as one door closes another one opens. There is huge untapped potential in manufacturing green planes, trains and automobiles and selling them at home and abroad. If the Government use the upcoming industrial strategy to drive investment in these sectors, this could be the spark that leads to thousands of new consumers to start buying British and buying green.”
Prime Minister Sir Keir Starmer called for a “calm and collected response” to the tariffs, while Business Secretary Jonathan Reynolds stated his “objective” is to have the tariffs reversed, though he could not provide a timeline.
Source: Independent
