The UK's automotive industry is sounding the alarm over what it describes as an 'existential threat' posed by Donald Trump's proposed 100% tariffs on European car imports. Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), has issued a stark warning about the potential consequences for British carmakers if the former US president returns to the White House.
Industry on 'Red Alert'
Speaking ahead of the SMMT's annual dinner, Hawes revealed that 'everyone is on red alert' about Trump's tariff plans. The proposed measures could devastate an industry that exports about 15% of its production to the United States, worth approximately £3.5 billion annually.
Potential Fallout for UK Manufacturers
The UK automotive sector, which employs nearly 800,000 people, faces particular vulnerability due to:
- Reliance on US exports for premium brands like Jaguar Land Rover and Bentley
- Complex supply chains that span both the UK and EU
- Existing challenges from Brexit trade barriers
Hawes emphasised that while the industry has weathered Brexit and pandemic shocks, Trump's tariffs could be 'a step too far' for many manufacturers.
Political Response and Industry Calls
The warning comes as Labour leader Keir Starmer prepares to meet with automotive executives. Industry leaders are urging the next UK government, regardless of political stripe, to:
- Prioritise trade negotiations with the US
- Secure exemptions or phase-in periods for any tariffs
- Increase support for electrification and skills development
The Department for Transport has acknowledged the concerns but declined to speculate on hypothetical scenarios, stating only that it continues to monitor developments closely.
