Trump’s tariffs put 25,000 UK automotive jobs at risk, think tank warns

More than 25,000 UK car manufacturing jobs could be at risk if Donald Trump’s planned import tariffs are introduced, according to new analysis.

The US president’s policy, set to be confirmed on Wednesday, could “completely destabilise the UK car manufacturing industry”, the Institute For Public Policy Research (IPPR) said.

Researchers warned that employees at Jaguar Land Rover and Mini are some of the most exposed.

Mr Trump is planning to impose a 25% tariff on imports of cars and car parts.

The US is the second largest export market after the European Union for cars built in the UK.

Some 16.9% of UK car exports were to the US last year, representing a total of more than 101,000 units worth £7.6 billion.

The IPPR recommended the UK should respond by capitalising on the transition to net zero and build on its “niche” of manufacturing “green planes, trains and automobiles”.

The only way to secure transport manufacturing jobs in the UK is to “double down” on making sure the country is competitive in creating “zero or low emission transport products”, it added.

The think tank encouraged the Government to use its upcoming industrial strategy to grow UK demand for these products by offering incentives on domestic-made electric cars, reducing VAT on public charging, and providing grants to low-income buyers.

IPPR research fellow Pranesh Narayanan said: “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.”

Prime Minister Sir Keir Starmer told Sky News that businesses want a “calm and collected response” to US tariffs, and “nobody wants to see a trade war”.

Business Secretary Jonathan Reynolds told the channel it was his “objective” to have the tariffs reversed, but acknowledged he “can’t give a timescale on that”.