US President Donald Trump has slapped tariffs of 25% on cars and car parts imports. The UK government is trying to strike a deal with the US that would avoid tariffs being implemented. For the UK, the US is the second largest car export market after the EU.
In the US car share prices fell on the news of the imposition of tariffs. GM, Ford and Tesla fell 8%, 4.5% and 1.3% respectively.
Mike Hawes, SMMT chief executive, said, “Today’s announcement by President Trump is not surprising but, nevertheless, disappointing if, as seems likely, additional tariffs are to apply to UK made cars.
“The UK and US auto industries have a long-standing and productive relationship, with US consumers enjoying vehicles built in Britain by some iconic brands, while thousands of UK motorists buy cars made in America.
“Rather than imposing additional tariffs, we should explore ways in which opportunities for both British and American manufacturers can be created as part of a mutually beneficial relationship, benefitting consumers and creating jobs and growth across the Atlantic.
“The industry urges both sides to come together immediately and strike a deal that works for all.”
