The UK Government must negotiate down the US’s punitive 25% tariff on car exports from the UK, Sir Andy Street said today.
“I actually agree with what the Prime Minister [Keir Starmer] has done thus far – to show restraint,” Street said.
“But the Government has got to negotiate down this 25% tariff on cars. I would be absolutely single-minded in negotiating that away with Trump. I do believe it can be done.”
More than 20% of West Midlands’ GDP is from exports
In 2024 the West Midlands accounted for 10.1% of all UK exports, the third highest of any region outside the South East and London, University of Birmingham analysis found – and more than 20% of the region’s GPD (gross domestic product) came from exports.
“And the biggest element of our exports is cars,” said Street, stressing that one in five cars off JLR’s Solihull production line has, until now, gone to America.
A 10% base-layer import tariff on all UK goods into the US coupled with 25% on automotive products means UK cars are now a third more expensive for US consumers.
‘WM more exposed than any other UK region’
“This region’s economy is the most exposed of any in the country,” he said.
“The starting point for negotiating down Trump’s all this is the [trade] deficit. They [the US] have a very small deficit with us, so we need to demonstrate to him [Trump] that it is not in the US’s interests to be doing this. This can be done.”
US titans of tech proved this can be done. Late Friday US authorities announced smartphones and other tech gadgetry popular with American consumers were exempt from the 125% import levy imposed on Chinese goods, and from the 10% base-layer tariff from all other countries.
For all the chaos, this proved that Trump does change tack when he understands his political interests are at stake. Americans like their stuff. So the tariffs have gone.
Street’s logic is to do likewise with cars from the WM region: explain that Americans like them and don’t want to pay over the odds for them. If successful, the auto levy will be ancient history in the time it takes Trump to press ‘go’ on a Truth Social post.
Street said: “At the moment there is no increase in tariffs [on goods] coming into the UK, so there is no increase in prices to British consumers, so if I was CEO of John Lewis I’d be saying to Government the one thing you must not do is retaliate because you would then stoke inflation in the UK, reduce demand and probably bring about a recession in the UK.”
‘Everyone has become poorer’
Despite Trump’s reversals of some of his tariffs, and the resulting uplift in global markets, indices are still notably lower than they were.
“Everybody walking past us here today has become poorer over the last few days,” Street added.
“Some don’t know it but their pensions are tied up in the stock market. There is a direct impact on everybody. All sorts of people are impacted by this.”
