Trump Announces 25% Import Tariff On Cars And Parts
President Trump announced a 25% tariff on cars and car parts yesterday, which is likely to have a considerable impact on UK to US Exports.
The tariffs on cars, which apply to imports from all worldwide countries, is due to come into effect from April 2nd, while the tariff on car parts is due to follow in May.
Trump said the measures will lead to “tremendous growth” for the car industry, while promising it would create jobs and investment in the US. Analysts are not quite as confident, fearing this will hinder US car production and increase prices, while also putting a massive strain on relations with allies.
While Mexico, Japan, South Korea, Canada and Germany will be the countries worst affected, the levies will be a major concern for the UK’s car industry, with almost 20% of its car exports currently going to the US.
Cars are also the UK’s leading export product to the US, accounting for around £8.2 billion of trade. A simplified calculation suggests that the new 25% import tariffs could add £2 billion to the cost.
The below charts provide a graphical representation of the current statistics.
