The UK car industry could take a massive hit because of Donald Trump's new import tariffs. A think tank has warned that more than 25,000 jobs could be on the line.
Trump is expected to slap a 25% tariff on cars and car parts imported into the US, the UK’s second-biggest market after the EU. That’s bad news for manufacturers like Jaguar Land Rover and Mini, which rely heavily on exports to the States. Last year alone, the UK sent over 101,000 cars worth £7.6 billion to the US.
The Institute for Public Policy Research (IPPR) says these tariffs could seriously shake up the UK’s car industry. But instead of fighting to keep things as they are, the think tank suggests the UK should pivot to something bigger: leading the way in green transport.
They argue that the best way to secure jobs is by doubling down on building electric and low-emission vehicles, as well as green planes and trains. To make that happen, they’re urging the government to step up with new incentives—like tax breaks for British-made EVs, lower VAT on public charging, and grants for people on lower incomes to buy electric cars.
IPPR’s Pranesh Narayanan put it bluntly: “Trump’s tariffs have huge potential to completely destabilise the UK car manufacturing industry, affecting tens of thousands of jobs and putting the Government’s growth plans at jeopardy.
“However, as one door closes another one opens.
“There is huge untapped potential in manufacturing green planes, trains and automobiles and selling them at home and abroad.
“If the government use the upcoming industrial strategy to drive investment in these sectors, this could be the spark that leads to thousands of new consumers to start buying British and buying green.”
So, while the tariffs could cause major disruption, they could also be the push the UK needs to go all-in on the future of transport. The question is—will the government step up?
