Trump tariffs ‘posed existential threat’ to Midland carmakers

THE huge hike in import tariffs into the US which were later reduced for the UK posed “an existential threat” to West Midlands car makers, a government minister has said.

- TAMLYN JONES Business Correspondent

Gareth Thomas, small businesses and exports minster, told the Birmingham Post he understood how vital the US market was for manufacturers in the region and that discussions continued over the new US-UK trade deal.

In April, US President Donald Trump announced that cars imported into the US would be hit with a 27.5 per cent tariff - a huge climb from the previous figure of just 2.5 per cent.

The move initially prompted West Midlands manufacturer JLR to pause sending cars to America while Warwickshire-based Aston Martin announced it was limiting the number it would export.

There was a certain amount of relief when a revised deal was announced two weeks ago which meant UK car makers would be subject to a ten per cent tariff for the first 100,000 cars exported to America.

Mr Thomas told the Post: “We have an ongoing discussion with the US so obviously we are going to be pushing for as much as we can do in terms of improving the trading relationship because we know how significant the car industry is to the West Midlands.