BRITAIN'S economy is at risk of being battered by Donald Trump's escalating trade war, with car makers the latest to be left reeling.
Motor plants across the country could be hit by a 25 per cent tariff on all vehicles imported into the US, potentially putting thousands of jobs at risk.
The latest punishing levy is due to kick in in less than a week's time - April 2-on what US president Trump has called "liberation day" when a wave of other tariffs are set to be imposed.
Chancellor Rachel Reeves insisted: "We are working intensely with the US to try to come to an agreement ahead of these tariff increases next week."
But, given the UK was unable to avoid a 25 per cent tariff on UK-made steel to the US, hopes are not high. The wider fear is that Trump's ramping-up of tariffs will trigger a trade war that could cripple the global economy.
On Wednesday, the Office for Budget Responsibility said an all-out tariff dispute between countries could wipe out the Chancellor's "tiny" financial buffer that could then lead to further tax rises and spending cuts. The OBR was already forced to halve its growth forecast for the UK this year to one per cent, even before fully factoring in the potential impact of tariffs.
The US imported roughly eight million cars last year, and almost half of vehicles sold there are foreign. The value of those imports is put at around £186billion but that rises to almost £370billion once parts are included. As well as Mexico and Canada, the other countries facing a big hit are Japan, South Korea, and Germany.
image [https://cdn.magzter.com/1583517504/1743130854/articles/H1jbcaRDsWTEmBl87Asys/4325333211.jpg]
The Society of Motor Manufacturers and Traders says the US is the UK's second biggest market for our cars, after the EU. HMRC data shows the value of UK car exports to the US in 2024 was £7.6billion.
Among those most exposed to tariffs are luxury c...
Motor plants across the country could be hit by a 25 per cent tariff on all vehicles imported into the US, potentially putting thousands of jobs at risk.
The latest punishing levy is due to kick in in less than a week's time - April 2-on what US president Trump has called "liberation day" when a wave of other tariffs are set to be imposed.
Chancellor Rachel Reeves insisted: "We are working intensely with the US to try to come to an agreement ahead of these tariff increases next week."
But, given the UK was unable to avoid a 25 per cent tariff on UK-made steel to the US, hopes are not high. The wider fear is that Trump's ramping-up of tariffs will trigger a trade war that could cripple the global economy.
On Wednesday, the Office for Budget Responsibility said an all-out tariff dispute between countries could wipe out the Chancellor's "tiny" financial buffer that could then lead to further tax rises and spending cuts. The OBR was already forced to halve its growth forecast for the UK this year to one per cent, even before fully factoring in the potential impact of tariffs.
The US imported roughly eight million cars last year, and almost half of vehicles sold there are foreign. The value of those imports is put at around £186billion but that rises to almost £370billion once parts are included. As well as Mexico and Canada, the other countries facing a big hit are Japan, South Korea, and Germany.
image [https://cdn.magzter.com/1583517504/1743130854/articles/H1jbcaRDsWTEmBl87Asys/4325333211.jpg]
The Society of Motor Manufacturers and Traders says the US is the UK's second biggest market for our cars, after the EU. HMRC data shows the value of UK car exports to the US in 2024 was £7.6billion.
Among those most exposed to tariffs are luxury c...
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Daily Record (Digital) - 1 Issue, March 28, 2025