4 weeks ago
The Society of Motor Manufacturers and Traders (SMMT) has hit out at president Donald Trump’s decision to slap 25% tariffs on imported vehicles, branding the move ‘disappointing’.
The organisation’s chief, Mike Hawes, warned the move risks hurting both UK and US manufacturers and consumers.
The White House announced the import tariff on Wednesday, claiming it will boost domestic manufacturing and protect US jobs.
Announcing the move, Trump said: ‘The beauty of the 25 [%] is it’s one number. And that number is going to be used to reduce debt greatly in the United States.
‘Basically I view it as reducing taxes and also reducing debt, and within a fairly short period of time I think we’re going to have a balance sheet which will be outstanding.’
Hawes said it was ‘not surprising but, nevertheless, disappointing’ and urged both governments to strike a deal that avoids further damage.
‘If, as seems likely, additional tariffs are to apply to UK-made cars, it’s a blow to a long-standing and productive relationship,’ he said.
‘US consumers enjoy vehicles built in Britain by some iconic brands, while thousands of UK motorists buy cars made in America.
‘Rather than imposing new tariffs, we should be creating opportunities for both British and American manufacturers as part of a mutually beneficial relationship – benefiting consumers and creating jobs and growth on both sides of the Atlantic.’
He called on both sides to ‘come together immediately and strike a deal that works for all’.
The tariffs announced by the Trump administration also look to create issues for US car firms.
Many source their components from across the globe – meaning they could be faced with higher prices.
By Wednesday afternoon, shares in General Motors dropped about 3% while Stellantis fell nearly 4%.
Ford’s stock rose slightly, however.
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