Trump’s car tariffs to put 25,000 UK jobs at risk, IPPR say
President Donald Trump’s 25 per cent tariffs on all car imports to the US could destroy thousands of UK jobs, the Institute for Public Policy Research (IPPR) have suggested.
The think tank estimates that around 25,000 jobs will come under threat as a result of Trump’s tariffs due to come into effect on Wednesday.
The most exposed brands include Jaguar Land Rover and Mini, the IPPR said, as respective factories in Solihull and Oxford would be at risk of closing down.
IPPR’s calculation assumes that car firms move abroad to avoid tariffs.
UK vehicle exports to America – its largest trading partner – are worth some £9bn.
The think tank estimated that there were a total of 263,000 workers in transport manufacturing. It said exports of non-electric cars fell by 24 per cent between 2018 and 2022.
Pranesh Narayanan, a research fellow at IPPR, said the government’s growth plans were “at jeopardy”.
“Trump’s tariffs have huge potential to completely destabilise the UK car manufacturing industry, affecting tens of thousands of jobs,” Narayanan said.
Car manufacturing is already under intense strains as the sector saw a 11.6 per cent decline in output in February, according to the Society of Motor Manufacturers and Traders (SMMT).
The UK is gearing up for much worse as Trump prepares to announce extra tariffs on Wednesday in what he has dubbed ‘Liberation Day’.
Prime Minister Keir Starmer is hoping to clinch a trade deal with the US but there is no indication the two countries will come to an agreement in the short term.
Downing Street conceded that Trump is likely to include the UK in sweeping tariffs on goods on Wednesday in an event the president has labelled as “Liberation Day”.
The IPPR is taking an optimistic view on Trump’s targeted taxes on car imports as it urged Chancellor Rachel Reeves to subsidise businesses involved in green transport manufacturing and reduce trade barriers with the European Union.
“If the government uses the upcoming industrial strategy to drive investment in [green transport] sectors, this could be the spark that leads to thousands of new consumers to start buying British and buying green.”