Automotive associations in the UK and Europe have responded to new US tariffs on cars, expressing concern and disappointment, in separate statements seen by Kallanish.
On 26 March, US President Donald Trump announced an additional 25% tariff on foreign-made cars coming into the country.
UK automotive association SMMT chief executive Mike Hawes says the announcement was “not surprising but, nevertheless, disappointing if, as seems likely, additional tariffs are to apply to UK made cars.”
Recent SMMT data show the UK exports two-thirds of its vehicle production, accounting for 77.6% of its 82,178 total output in February. The EU remained the largest market for UK car exports, taking 53.5%, followed by the US at 19.7% and China at 6.3%. February shipments to the EU and China fell 9.6% and 10.9% respectively, while those to the US rose 34.6%.
“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,” he adds.
Rather than calling for retaliatory or additional tariffs measures against the US, he said the UK should explore ways in which opportunities for both British and American manufacturers can be created as part of a mutually beneficial relationship. This would be in order to benefit consumers and create jobs and growth across the Atlantic.
“The industry urges both sides to come together immediately and strike a deal that works for all,” Hawes notes.
This echoes a similar sentiment from the UK’s steelmakers in response to earlier import tariffs by the US, who say that such measures would not be the correct response.
The UK did not respond to Trump’s import tariffs on steel in the same manner as the EU, which announced measures of its own, instead continuing ongoing trade deal discussions in the hope of seeking an exemption.
The European Automobile Manufacturers’ Association (ACEA) says in its own statement that it is “deeply concerned” by the US announcement. This comes at a “watershed moment for our industry’s transformation and as fierce international competition mounts,” it notes.
“European automakers have been investing in the US for decades, creating jobs, fostering economic growth in local communities, and generating massive tax revenue for the US government,” says Sigrid de Vries, ACEA director general.
She urges Trump to consider the negative impact of tariffs not only on global auto makers but also on US domestic manufacturing.
“Tariffs will not just impact imports into the US, a penalty that American consumers are likely to pay, but measures on automotive parts will also hurt auto makers producing cars in the US for export markets. European manufacturers export between 50% and 60% of the vehicles they make in the US, making a substantial positive contribution to the US trade balance,” she notes.
She also called for dialogue with the US to find an “immediate resolution to avert tariffs and the damaging consequences of a trade war”.
Carrie Bone UK
