25,000 UK automotive jobs at risk from impending US tariffs
- The US plans to implement tariffs on car imports, with a potential impact on the UK automotive sector.
- The tariffs could put around 25,000 jobs at risk, particularly for employees at Jaguar Land Rover and the Mini factory.
- The UK is encouraged to focus on electric vehicle production and green transportation solutions to mitigate the impact of these tariffs.
On April 2, 2025, the Institute for Public Policy Research (IPPR) warned that up to 25,000 jobs in the UK motor industry could be at risk due to planned import tariffs by the US government. These tariffs are set to impose a 25% tax on car imports, affecting major manufacturers in the UK, particularly workers at Jaguar Land Rover and the Mini factory in Oxford. The automobile sector in the UK exports a significant portion of its production, with nearly one in eight cars made intended for the American market, highlighting the potential impact of these new tariffs. The proposed tariffs could jeopardize a significant number of jobs and destabilize the UK's car manufacturing sector drastically, raising concerns about the long-term viability of this crucial industry. In response to this looming threat, the IPPR has urged the UK government and automotive sector to pivot towards enhancing production in electric vehicles and niche markets, including green aircraft and trains. The think tank's recommendations suggest that the UK can leverage the transition towards a net-zero carbon economy by pushing for innovations that cater to low-emission transport solutions. Prime Minister Sir Keir Starmer commented that a composed response is necessary to avoid escalating tensions into a trade war, as businesses express a desire for strategic planning to mitigate potential fallout.