Fri, 28 Mar 2025

Fri, 28 Mar 2025 UK car firms urge help as Trump tariffs loom

Manufacturers are expected to ask for state support ahead of next week's 25% tax on exports.

* UK car firms are seeking support from the government as hopes fade for a deal on US tariffs.
* Companies met with Industry Minister Sarah Jones to discuss their response to 25% tariffs on US car imports.
* Some car companies believe it's too late to delay the measure and want to discuss support options instead.
* The UK government is trying to negotiate exemptions from US import levies due to come into force on April 3, but an agreement with the US seems unlikely.
* Tariffs could have a huge impact on the UK economy, potentially reducing economic growth by 1% and wiping out Chancellor Rachel Reeves' £9.9bn headroom against debt rules.
* The government is taking a "pragmatic" approach to the tariffs, while other countries such as Germany, France, and Canada are vowing trade retaliation.
* Car firms across the globe saw their share prices fall sharply following Trump's tariff announcement.
* UK car production fell 12% in February compared to the year before, making the industry vulnerable to further disruption.
* Ineos Automotive chief executive Lynn Calder said the tariffs are a "significant threat" and accused EU politicians of not taking action to negotiate with Trump.
  >>