Donald Trump’s declaration of today, April 2, as “Liberation Day” for US trade might sound like political theatre – but for West Midlands manufacturers, it could spell real-world trouble.
The US President is preparing to slap tariffs on countries he claims are taking advantage of America, with sweeping new levies expected to be announced this week with specific tariffs also likely for the UK, despite ongoing trade talks with the Starmer’s government. At the top of Trump’s hit list? The EU, UK, China and Mexico – some of the West Midlands’ biggest overseas markets.
The region, long known as the beating heart of Britain’s automotive and manufacturing sectors, has a lot to lose. Local companies such as Jaguar Land Rover, JCB and countless Tier 1 suppliers export millions of pounds’ worth of goods to the US every year. Tariffs of 25% on car imports – already announced – could add huge costs to West Midlands-made vehicles landing on American shores.
Worse still, the Trump administration is targeting what it calls “non-tariff barriers” – including digital taxes, green regulations and subsidies common across the UK and Europe. That puts British aerospace, engineering and high-tech manufacturers firmly in the crosshairs.
The Office for Budget Responsibility has warned a full trade war could eliminate Britain’s fiscal headroom if tariffs persist.
“Last thing we need” – Dr Richard Fallon
“This kind of trade disruption is the last thing we need,” said Dr. Richard Fallon, CEO of the Technology Supply Chain, a West Midlands based tech and manufacturing supply chain membership group.
“Our members are already struggling with post-Brexit customs delays, supply chain inflation, high energy costs and tight margins. If the US starts throwing up tariff walls, it could knock confidence and investment back just as we’re rebuilding.”
The EU is preparing retaliatory tariffs, and China has already fired back – raising fears of another tit-for-tat trade war. But the UK, still chasing a comprehensive trade deal with Washington, with Starmer ruling out immediate retaliation in hopes of negotiating a better deal.
The UK has offered concessions on its digital services tax and seafood tariffs but refuses to compromise on food standards like chlorinated chicken. However, Trump’s demands go beyond tariffs, touching on regulatory, tax and environmental policy – raising fears of “regulatory subordination” in UK trade policy circles.
For now, West Midlands firms are left in limbo. With the region relying on exports for jobs, innovation, and economic recovery, Trump’s “Liberation Day” could feel more like “Lockdown Day” for local industry.
From Coventry’s car plants to Birmingham’s tech hubs, the message is clear: international politics is no longer background noise – it’s front and centre on the factory floor.
