Thu, 27 Mar 2025

Thu, 27 Mar 2025 UK not entering trade war with US over car tariffs, says PM

The UK is in "intense negotiations" with the US over tariff plans, the prime minister says.

* The UK government will try to avoid tariffs on cars entering the US through "intense negotiations" with the US.
* The 25% import taxes, set to come into effect on April 2, could upend global motor trade and supply chains.
* Jaguar Land Rover (JLR), one of the biggest UK-based exporters to the US, will be one of the manufacturers most affected by the tariffs.
* JLR is owned by Indian conglomerate Tata Motors and said it is "waiting for further information" on the tariffs.
* The UK car industry employs about 198,000 people directly and supports an additional 813,000 jobs in the wider economy.
* Tariffs could lead to higher prices for consumers and encourage them to buy US-built vehicles.
* Economists have questioned Trump's approach, arguing it will push up inflation.
* The Society of Motor Manufacturers and Traders (SMMT) has called on both governments to strike a deal.
* Duncan Edwards, chief executive of BritishAmerican Business, said there is a "very strong case" for the UK to be free from all US tariffs.
* John Neill, founder of Unipart, said the tariffs will push international consumers towards buying Chinese-made cars.
* Ibisworld analyst Yusuf Allinson said the tariffs represent a "grave danger" to the UK car manufacturing sector and could lead to retaliatory tariffs on Tesla.
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