Synopsis
British PM Keir Starmer has warned of serious threats posed by new US tariffs on UK goods, pledging urgent support for the domestic auto industry amidst global economic instability.Key Takeaways
- The UK PM warns US tariffs threaten the economy.
- Support measures for the automotive sector announced.
- JLR temporarily halting US vehicle shipments.
- Potential job losses in the automotive industry.
- Plans to expand trade relationships beyond the US.
London, April 8 (NationPress) British Prime Minister Keir Starmer expressed concern that newly introduced US tariffs on goods from the UK represent a significant danger to both the global economy and Britain's industrial sector. He committed to providing immediate support for the domestic automotive industry in light of what he termed a world experiencing global instability.
During his visit to Jaguar Land Rover's (JLR) manufacturing facility in the West Midlands on Sunday, Starmer labeled this scenario as a moment of reckoning, according to the Xinhua news agency.
“A twenty-five per cent tariff on automotive exports, along with a ten percent tariff on other goods, presents a formidable challenge for our future. The global economic repercussions could be severe,” he warned.
“No one benefits from a trade war. Nobody is under any illusion that these tariffs are positive news,” he remarked, stressing that this is a moment for calm reflection.
These comments followed JLR's announcement of a temporary suspension of shipments of UK-manufactured vehicles to the United States. This month-long halt, starting Monday, will enable the company to evaluate the impact of the US tariffs and investigate strategies to mitigate costs. With nearly a quarter of its annual vehicle sales, which total 400,000, going to the US, JLR faces significant challenges due to these new trade barriers.
According to industry data, JLR generated 6.5 billion pounds ($8.27 billion) in revenue from the US for the fiscal year ending March 2024, making it its most profitable market. The company employs 38,000 workers in the UK and supports a vast supply chain throughout the West Midlands. Analysts have cautioned that if the tariffs persist, up to 25,000 jobs in the UK automotive sector may be endangered.
In response, the Prime Minister reaffirmed his government's resolve to safeguard British industry. “These are testing times, but we are here because we intend to support you wholeheartedly,” he assured the workers at the facility.
To alleviate pressures on car manufacturers, Starmer unveiled a set of support measures, which include increased flexibility in achieving electric vehicle (EV) production goals, a 20 percent reduction in penalties for non-compliance, and an extension of the phase-out date for hybrid vehicles from 2030 to 2035.
Starmer emphasized that any trade agreement must prioritize the UK's national interests, while also pledging to expand the country's international trade relationships beyond the US market.
“We will collaborate with our key partners to lower trade barriers worldwide, expedite trade agreements with other countries, and advocate for the principles of free and open trade globally,” he stated. (1 pound = $1.29)
