US to impose 25% import tariffs on cars and parts
US President Donald Trump has announced he will impose new 25% import tariffs on cars and car parts.
Taxes will be imposed on imported cars from 2 April with charges on parts expected to be introduced in May.
However, Chancellor Rachel Reeves has said the government is having ‘extensive’ talks with the US to ‘protect trade’ between the UK and US.
She said: “A million British people work for American firms. A million Americans work for British firms. Our two economies are so closely intertwined. I believe – and we make this case to the United States – that free trade, fair trade, is good for both of our countries, but let’s see where we get to in the next few days.
The Society of Motor Manufacturers and Traders has urged both sides to come together to strike a deal, emphasising the long-standing and productive relationship between the US and UK automotive markets.
Productive relationship
Chief executive Mike Hawes said: “Today’s announcement by President Trump is not surprising but, nevertheless, disappointing if, as seems likely, additional tariffs are to apply to UK made cars.
“The UK and US auto industries have a long-standing and productive relationship, with US consumers enjoying vehicles built in Britain by some iconic brands, while thousands of UK motorists buy cars made in America.
“Rather than imposing additional tariffs, we should explore ways in which opportunities for both British and American manufacturers can be created as part of a mutually beneficial relationship, benefitting consumers and creating jobs and growth across the Atlantic.
“The industry urges both sides to come together immediately and strike a deal that works for all.”
