The American tariffs, particularly those on automotive exports, will have a significant impact on the West Midlands, a major hub for car manufacturing.
Our region is home to companies like Jaguar Land Rover and Aston Martin, and exports a substantial number of vehicles to the US.
The newly imposed 25% tariff on car exports is expected to cost the West Midlands around £6.2 billion in GDP by 2030, accounting for 62% of the total impact on the UK. This could put thousands of jobs at risk.
Additionally, businesses in the region are being urged to explore alternative markets and negotiate with US customers to manage the effects of these tariffs. The tariffs are also likely to increase the cost of British goods for American consumers, reducing demand and further impacting exports. The West Midlands is expected to lose £332 million in export value because of the 10% tariff band imposed on the UK.
In what could be a small upside, West Midlands manufacturers who import components from China are experiencing reduced shipping costs as global trade channels for Chinese exporters diminish. That said, a glut of cut-price Chinese goods flooding into the UK could also have downsides.
Opportunity for WM auto sector?
Meanwhile, folks in the region sceptical of Trump’s protectionist stance are likely to swerve US exports in the same way that is already impacting Tesla sales.
Trade wars historically never seem to have any clear winners, but – and I recognise this is a very ‘glass half full’ perspective – could there be an opportunity here for the West Midlands auto sector to seize market share?
