Five British car manufacturers fear tariff increases after Donald Trump’s victory

A growing number of automakers around the world are raising concerns about tariffs that could come into effect after Donald Trump’s election victory.

Trump won the race to become America’s 47th president by promising major changes to the country’s domestic policies, including new ways to support the auto industry.

During a pre-election speech in Michigan, often considered the U.S. center of auto manufacturing, Donald Trump promised steep tariffs on imported models.

He explained: “This is the deal I’m going to offer to every major company and manufacturer on earth: I’ll give you the lowest taxes, the lowest energy costs, the lowest regulatory burden and free access to the best and largest market in the world. the planet.

‘But only if you make your product here in America. It all disappears if you don’t make your product here. If you don’t make your product here, you have to pay a tariff, a very substantial tariff. “

Coach reports that the move could cause panic in the British industry, particularly among five luxury brands – JLR, Bentley, Aston Martin, McLaren and Rolls-Royce – which accounted for the majority of the 73,571 exports to the US in 2023

Newly elected President Donald Trump’s comments were mainly aimed at companies setting up factories in both Mexico and China.

Both countries have recently experienced a surge in car production, with Mexican car production increasing by some 68 percent between 2016 and 2024.

Many car companies use the two countries because of the lower labor costs, resulting in greater profitability and cheaper prices at the gas stations.

Michigan, David Christ, Group Vice President and General Manager of the Toyota Division, stated that producing vehicles entirely in America would be a difficult task because various components typically come from all over the world.

He added: “The thing about tariffs is that it’s not so much about the car as it is about the part. The global supply chain is so large and so diverse that it would be very difficult to build every part in one location.

“Therefore, the tariffs may not affect the car because it is built in the U.S., but it will affect many parts that are on the car, raising the price for the consumer.”

Speaking to Euronews, Simon Schuetz of the Association of the German Automobile Industry (VDA), an industry organization representing the interests of brands such as Volkswagen, BMW and Mercedes-Benz, called for talks to prevent European carmakers from being subjected to the attack .

He continued: “I think both sides need to talk to avoid this. If so, we both know what will happen next. European Union would probably have some measures in response to this, and that would be the start of a new trade conflict or something like that.

“That is not what we need. Europe and the US need to understand that, looking at the geopolitical challenges, we need to work together, and that politics and economics need to be looked at together.”