The UK's #automotive sector could soon be navigating complex challenges amid President Trump's recent tariffs. On the face of it, it might seem we are not in the path of a trade increase from the US, but with 10% being imposed on Chinese imports by the US and with the UK currently not imposing tariffs to the Chinese on vehicles - can you see where I'm going with this? These and other measures are reshaping global trade dynamics with significant implications for car manufacturing, costs and businesses.
A notable concern is the potential influx of affordable Chinese electric vehicles (#EVs) into the #UK market. As the US and EU implement higher tariffs on Chinese EVs, the UK could become a primary destination for these vehicles, potentially undercutting domestic manufacturers. On the up side to this, EVs in the UK will have a wider adoption and appeal due to price and budgets in the industry. But (and its a BIG BUT):
This trend poses challenges for UK-based carmakers and businesses in the industry who may struggle to compete with a surge of imported vehicles. The situation underscores the need for strategic planning within the UK's automotive industry and Government to address these evolving trade dynamics.
The trade off if the UK wants a free trade deal with the US could be the Trump administration dangling the carrot but at the cost of imposing tariffs to the Chinese.
Who thought wider politics would really affect our industry and be used as pawns? 🙄
I have always been keen on being "up to date" with the wider political landscape and how this will both directly and indirectly shape our industries. This could get a lot more bumpy in the weeks/months ahead…
