BIRMINGHAM (XINHUA) – The United States (US) government’s new wave of tariffs on imported vehicles is placing severe pressure on Britain’s automotive industry, threatening to disrupt operations, endanger tens of thousands of jobs and undermine long-term production sustainability, according to a leading expert on Britain’s auto industry.
In an exclusive interview with Xinhua, business economics expert at the University of Birmingham Professor David Bailey described the aftermath of the US auto tariffs as an impending “industry crisis” that could hit hardest in Britain’s manufacturing heartland.
On April 3, the Trump administration imposed a 25-per-cent tariff on imported vehicles, with an additional 25 per cent duty on auto parts scheduled to take effect in early May.
“Cars are the United Kingdom’s number one goods export to the US, worth as much as GBP9 billion (USD11.88 billion) a year,” Bailey said. “The West Midlands is the number one exporting region, largely on the back of Jaguar Land Rover. This is a huge potential hit for the industry and the region.”
He emphasised that the entire automotive value chain is deeply rooted in the West Midlands. “When you consider not just manufacturing but R&D, supply chains, and logistics, the scale is massive.”
A recent study by the Institute for Public Policy Research estimated that around 25,000 jobs across the British car industry are at risk due to the new US tariffs, a figure Bailey considers to be a significant underestimate. “You could easily see that number in the West Midlands alone,” he noted.
The effects, he added, extend beyond vehicle assembly lines. “One job in a plant like Halewood could support up to seven others in the supply chain. If those plants are hit, the impact will cascade across suppliers, services and local economies.”
With luxury brands like Rolls-Royce, Bentley, Lotus, and McLaren sourcing components from the West Midlands, the ripple effect could spread nationally. Bailey argued that US President Donald Trump aims to pressure foreign automakers to raise their prices, thereby steering American consumers toward domestic cars.
However, “Even American manufacturers like Ford, GM, Chrysler, and even Tesla, depend on imported parts. That’s going to raise production costs in the US, too.”
