The British government is actively negotiating with the United States over the implications of upcoming car import tariffs, Finance Minister Rachel Reeves has confirmed. U.S. President Donald Trump recently announced that a 25% tariff on imported vehicles will take effect on April 2.
In response, Reeves emphasized the deep economic ties between the UK and the U.S., highlighting the potential impact on British trade. She stated that the Prime Minister recently visited Washington to meet with the U.S. President. The UK is now holding extensive discussions with American counterparts to safeguard trade between the two nations, and these conversations will continue.
Reeves underscored the significance of U.S.-UK economic relations, noting that one million British citizens are employed by American firms, while an equal number of Americans work for British companies. She stressed that the announcement of these tariffs is a key issue, but discussions are ongoing to determine what this means for the UK. The UK government firmly believes in advocating for free and fair trade, which benefits both countries, and will continue negotiations in the coming days.
The automotive industry is particularly vulnerable to the proposed tariffs. According to the Society of Motor Manufacturers and Traders (SMMT), approximately 80% of cars manufactured in the UK are exported, with the U.S. being the second-largest market after the EU. Last year, 16.9% of UK car exports were shipped to the U.S., with Jaguar Land Rover among the manufacturers most likely to be affected by the new tariffs.
