Fears for major car manufacturer’s UK plant after Donald Trump’s ‘gut punch’ tariffs

FEARS for a major car manufacturer's UK plant have been revealed after Donald Trump's “gut punch” tariffs.

Staff at Oxford's Mini plant have raised concerns about their future after the US President announced a 25 per cent tariff on car imports.

And, a will be implemented from Saturday.

Oxford East MP Anneliese Dodds spoke on the issue in the House of Commons on Thursday.

She said: “Workers at BMW Cowley are deeply concerned by recent news.

“BMW is right, a trade war would have no benefits, and the Secretary of State is right to engage calmly with his US counterparts.

“But can I ask what discussions he has had with his EU counterparts given how integrated our automotive sector is with that in EU countries?”;

Business Secretary Johnathan Reynolds replied: “In some of our iconic automotive manufacturing brands, BMW, JLR, Aston Martin, who are a particular success in the US market, and therefore exposure to this.

“There is within government very close co-operation between the teams that are working on our EU reset and our trade negotiations in this area.

“So, I can assure her of the alignment of the continuity and consistency of policy in that area.”;

Meanwhile city councillor Linda Smith added how the BMW plant has employed locals for years.

She highlighted its importance to the local community even gave it an exemption from the Community Infrastructure Levy.

This comes after Trump unveiled the since the Second World War.

What the US President called “Liberation Day” and one of the most important days in American history was also a day of reckoning for how countries and companies around the world do.

The UK has been hit by a 10 per cent tariff – what the White House calls the baseline rate – on all goods imported into the .

But it's bad news for British car makers as Trump confirmed all foreign car imports will be subject to a further 25 per cent tariff.

The US imports £60.4billion British goods, fractionally more than the £57.9billion the UK imports from America.

The UK has been given the lowest rate of tariff.

By comparison has been hit with a 34 per cent “reciprocal tariff” – half the 67 per cent rate Trump claims China charges US importers.

However, added to the existing rate of tariffs on China, it takes the levy up to 50 per cent.

, where many Western companies have factories, will now face a 46 per cent tariff.

is hit with 24 per cent and Taiwan faces 32 per cent.

The EU will also face a 20 per cent – higher than the UK.

Journalist Ross Clark branded the but said they will also prove to be a hefty blow for US consumers and manufacturers.

The US faces a sharp revival of , although the effects on households might be mitigated to some extent if Trump uses revenue from his tariffs to lower other taxes.

The first reaction of many governments has been to threaten retaliation.

European Commission President lost no time in telling us a package of retaliatory tariffs was being finalised — although it later emerged that the EU will wait for several weeks before deciding how to respond.

So far, UK Prime Minister Sir Keir Starmer has kept an admirably cool head.

While erecting our own tariff barriers against US goods might seem tempting, it would merely serve to harm our own consumers and industries.

Nearly a third of the goods, by value, that we imported from the US in 2023 were fossil fuels — £18.7billion of them.

Mr Clark said a smarter move for Britain is to avoid ruffling the Trump administration’s feathers and to benefit from the fact we have been hit with the lowest rate of tariffs on Trump’s list.

With our US exports being subjected to ten per cent — half the level imposed on the EU — Britain has suddenly become a relatively good place for European manufacturers to locate their plants.

It is not quite the post-Brexit “trade deal”; we hoped for, but it gives us an advantage, nonetheless.