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 BMW Mini plant have raised concerns about their future after the US President announced a 25 per cent tariff on car imports.
And, a 10 per cent tariff on UK goods 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.
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“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.”
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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 biggest shake up in global trade 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 business.
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 United States.
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.
Tariff hit causing mixed feelings in government
By Jack Elsom, Chief Political Correspondent
BRITAIN'S 10 per cent tariff hit is causing mixed feelings in the upper echelons of government today.
Yes, it was the lowest levy doled out by Donald Trump and far below that imposed on many other countries.
But it will still hurt the UK economy, whack our exporters and likely cost scores of jobs.
And what of this charm offensive Sir Keir Starmer has attempted to get in the US President's good books?
Downing Street was quick to trumpet this approach - and the refusal to retaliate - as "vindication" we have escaped lightly from the tariff blizzard.
Yet many other countries have also been given the 10 per cent levy, including Brazil which has put in far less legwork with the White House than our government.
Ministers will be desperate now to sign this fabled economic deal in the hope it will do away with tariffs entirely.
One thing is undeniable: being outside the European Union has spared us being doubly worse off.
The 20 per cent tariff slung around the Brussels bloc would have been our fate should Brexit had not happened.
EU chief Ursula Von der Leyen has vowed to retaliate - which would have dragged us into a trade war with our closest ally if we were still a member.
It's not a pretty situation, but it could be a whole lot worse…
By comparison China 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.
Vietnam, where many Western companies have factories, will now face a 46 per cent tariff.
Japan 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 new tariffs a "gut punch" but said they will also prove to be a hefty blow for US consumers and manufacturers.
The US faces a sharp revival of inflation, 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 Ursula von der Leyen 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.
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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.
President Trump's Reciprocal Tariffs
PRESIDENT Trump unveiled his reciprocal tariff plan on countries worldwide on April 2, which he declared as "Liberation Day".
Reciprocal tariffs per country, which includes the 10% baseline fee:
- China: charges the US 67% tariffs, the US will counter with 34% reciprocal tariffs.
- European Union: charges the US 39% tariffs, the US will counter with 20% reciprocal tariffs.
- Vietnam: charges the US 90% tariffs, the US will counter with 46% reciprocal tariffs.
- Taiwan: charges the US 64% tariffs, the US will counter with 32% reciprocal tariffs.
- Japan: charges the US 46% tariffs, the US will counter with 24% reciprocal tariffs.
- India: charges the US 52% tariffs, the US will counter with 26% reciprocal tariffs.
- South Korea: charges the US 50% tariffs, the US will counter with 25% reciprocal tariffs.
- Thailand: charges the US 72% tariffs, the US will counter with 36% reciprocal tariffs.
- Switzerland: charges the US 61% tariffs, the US will counter with 31% reciprocal tariffs.
- Indonesia: charges the US 61% tariffs, the US will counter with 32% reciprocal tariffs.
- Malaysia: charges the US 47% tariffs, the US will counter with 24% reciprocal tariffs.
- Cambodia: charges the US 97% tariffs, the US will counter with 49% reciprocal tariffs.
- United Kingdom: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- South Africa: charges the US 60% tariffs, the US will counter with 30% reciprocal tariffs.
- Brazil: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Bangladesh: charges the US 74% tariffs, the US will counter with 37% reciprocal tariffs.
- Singapore: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Israel: charges the US 33% tariffs, the US will counter with 17% reciprocal tariffs.
- Philippines: charges the US 34% tariffs, the US will counter with 17% reciprocal tariffs.
- Chile: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Australia: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Pakistan: charges the US 58% tariffs, the US will counter with 29% reciprocal tariffs.
- Turkey: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Sri Lanka: charges the US 88% tariffs, the US will counter with 44% reciprocal tariffs.
- Colombia: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Peru: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Nicaragua: charges the US 36% tariffs, the US will counter with 18% reciprocal tariffs.
- Norway: charges the US 30% tariffs, the US will counter with 15% reciprocal tariffs.
- Costa Rica: charges the US 17% tariffs, the US will counter with 10% reciprocal tariffs.
- Jordan: charges the US 40% tariffs, the US will counter with 20% reciprocal tariffs.
- Dominican Republic: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- United Arab Emirates: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- New Zealand: charges the US 20% tariffs, the US will counter with 10% reciprocal tariffs.
- Argentina: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Ecuador: charges the US 12% tariffs, the US will counter with 10% reciprocal tariffs.
- Guatemala: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Honduras: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Myanmar (Burma): charges the US 88% tariffs, the US will counter with 44% reciprocal tariffs.
- Tunisia: charges the US 55% tariffs, the US will counter with 28% reciprocal tariffs.
- Kazakhstan: charges the US 54% tariffs, the US will counter with 27% reciprocal tariffs.
- Serbia: charges the US 74% tariffs, the US will counter with 37% reciprocal tariffs.
- Egypt: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Saudi Arabia: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- El Salvador: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Côte d'Ivoire: charges the US 41% tariffs, the US will counter with 21% reciprocal tariffs.
- Laos: charges the US 95% tariffs, the US will counter with 48% reciprocal tariffs.
- Botswana: charges the US 74% tariffs, the US will counter with 37% reciprocal tariffs.
- Trinidad and Tobago: charges the US 12% tariffs, the US will counter with 10% reciprocal tariffs.
- Morocco: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Moldova: charges the US 61% tariffs, the US will counter with 31% reciprocal tariffs.
- Angola: charges the US 63% tariffs, the US will counter with 32% reciprocal tariffs.
- Democratic Republic of the Congo: charges the US 22% tariffs, the US will counter with 11% reciprocal tariffs.
- Jamaica: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Mozambique: charges the US 31% tariffs, the US will counter with 16% reciprocal tariffs.
- Paraguay: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Zambia: charges the US 33% tariffs, the US will counter with 17% reciprocal tariffs.
- Lebanon: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Tanzania: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Iraq: charges the US 78% tariffs, the US will counter with 39% reciprocal tariffs.
- Georgia: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Senegal: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Azerbaijan:charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Cameroon: charges the US 22% tariffs, the US will counter with 11% reciprocal tariffs.
- Uganda: charges the US 20% tariffs, the US will counter with 10% reciprocal tariffs.
- Albania: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Armenia: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Nepal: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Sint Maarten: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Falkland Islands: charges the US 82% tariffs, the US will counter 41% with reciprocal tariffs.
- Gabon: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Kuwait: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Togo: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Suriname: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Belize: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Algeria: charges the US 59% tariffs, the US will counter with 30% reciprocal tariffs.
- Oman: charges the US 10& tariffs, the US will counter with 10% reciprocal tariffs.
- Uruguay: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Bahamas: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Lesotho: charges the US 99% tariffs, the US will counter with 55% reciprocal tariffs.
- Ukraine: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Bahrain: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Qatar: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Mauritius: charges the US 80% tariffs, the US will counter with 40% reciprocal tariffs.
- Fiji: charges the US 63% tariffs, the US will counter with 32% reciprocal tariffs.
- Iceland: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Kenya: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Liechtenstein: charges the US 73% tariffs, the US will counter with 37% reciprocal tariffs.
- Guyana: charges the US 76% tariffs, the US will counter with 38% reciprocal tariffs.
- Haiti: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Bosnia and Herzegovina: charges the US 70% tariffs, the US will counter with 35% reciprocal tariffs.
- Nigeria: charges the US 27% tariffs, the US will counter with 14% reciprocal tariffs.
- Namibia: charges the US 42% tariffs, the US will counter with 21% reciprocal tariffs.
- Brunei: charges the US 47% tariffs, the US will counter with 24% reciprocal tariffs.
- Bolivia: charges the US 20% tariffs, the US will counter with 10% reciprocal tariffs.
- Panama: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Venezuela: charges the US 29% tariffs, the US will counter with 15% reciprocal tariffs.
- North Macedonia: charges the US 65% tariffs, the US will counter 33% with reciprocal tariffs.
- Ethiopia: charges the US 10% tariffs, the US will counter with 10% reciprocal tariffs.
- Ghana: charges the US 17% tariffs, the US will counter with 10% reciprocal tariffs.
The full list was shared by The White House's rapid response team on X.
