UK hits the brakes on US trade war: Government seeks to avoid 25% car import tariffs

The government of Britain said it will not jump into a trade war with America regarding President Donald Trump's proposals for adding 25% import tariffs on cars. Tariffs that were set to go into effect on April 2 created outrage about the disruption of international motor business and supply chains.

Impact on the UK Motor Industry

The UK automotive sector is a major industry, with exports worth approximately £7.6 billion each year. The US is the UK's second-largest car market, following the European Union. Jaguar Land Rover (JLR) is among the biggest UK exporters to the US and will be significantly affected by the tariffs .

Government Response

Prime Minister Sir Keir Starmer stated that the government is engaged in "intensive talks" with US officials to prevent the tariffs. Chancellor Rachel Reeves has also reiterated free and fair trade between the nations .

Industry Concerns

The Society of Motor Manufacturers and Traders (SMMT) has termed the tariffs as "disappointing" and asked both governments to come to a consensus. The industry fears the tariffs will pass on the extra cost to the consumer and negatively impact UK car makers .

Potential Consequences

Analysts have cautioned that the tariffs could have unforeseen effects, such as prompting people to buy Chinese-assembled cars. The UK could also counterattack with tariffs on Tesla, the UK's top-selling electric vehicle