British car manufacturers are urgently calling for government assistance as hopes dwindle for a last-minute deal to avoid punishing 25% U.S. tariffs set to take effect on April 3. Industry leaders met with officials Friday to discuss contingency plans, with some automakers now believing tariff relief is unlikely and instead focusing on mitigation strategies.
The looming tariffs – part of President Trump’s broader trade policy – could deliver a severe blow to the UK economy. The Office for Budget Responsibility warns in a worst-case scenario, escalating global trade disputes could reduce UK economic growth by 1%, effectively erasing Chancellor Rachel Reeves’s £9.9 billion fiscal buffer.
While the government maintains negotiations continue (“there’s still all to play for”), Treasury Minister Darren Jones acknowledged the complexity of the situation, stating the UK must take a “different approach” to nations like Germany, which has vowed to resist the measures. A government spokesperson called the U.S. decision “extremely concerning” while emphasizing America’s status as an “indispensable ally.”
The crisis comes as UK automakers face multiple challenges, including sluggish EV demand and intense global competition. Industry analysts suggest the tariffs could disproportionately impact premium British brands that rely heavily on the lucrative U.S. market.
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