Why it matters:
The U.S. is the second-largest export market for the U.K. automotive industry, and the new tariffs could have significant repercussions for jobs and the economy in the U.K.
The big picture:
The 25% tariff, which took effect on Thursday, is part of a series of measures announced by President Donald Trump, creating shockwaves throughout global supply chains. The U.K. exports more cars to the U.S. than any other product, with the value of car exports reaching £8.3 billion in the 12 months leading up to the third quarter of 2024, according to the UK’s Department for International Trade.
What he's saying:
Jaguar Land Rover stated, "Following the imposition of tariffs earlier this week, we are halting all export shipments to the United States."
U.K. Prime Minister Keir Starmer has pledged to protect British jobs from the "storm" of tariffs, while the U.K. Treasury Secretary remarked, "The era of globalization is over."
Key points:
- The U.S. tariffs on car imports are set to be followed by tariffs on automotive parts next month, potentially leading to further job losses in the U.K.
- Experts in the U.K. have described Trump’s tariff war as a source of turmoil for the global economy, while Trump argues it will lead to increased investment and jobs in the U.S.
- Reports indicate that Nissan is considering shifting some of its vehicle production from Japan to the U.S. this summer.
- Following the announcement of the tariffs, shares of the top 100 companies in the UK plummeted by 4.9%
Go deeper:
China Hits Back at U.S. with 34% Tariffs, Lawsuit in Escalating Trade War
Following Trump's Tariff Announcement: Dow drops 1,500 , S&P 500 points
Zohre Khazaee
