Keir Starmer wants to 'fight' for a wider trade deal with the US to overcome Trump's tariffs
Sir Keir Starmer has admitted that “there will be an economic impact” from Donald Trump’s 10 per cent tariffs on the UK amid fears thousands of British jobs are at risk.
The government is plotting retaliatory tariffs and asking UK bosses to help draw up a list of products that “could be potentially included in any UK tariff response”.
The Prime Minister met business leaders in Downing Street on Thursday morning – including AstraZeneca’s Pascal Soriot, BAE’s Charles Woodburn and Jaguar Land Rover’s Richard Molyneux, industries which account for the most significant UK exports to the US and are facing the brunt of his sweeping taxes.
Starmer has pledged to “fight” for a broader trade deal with the US to overcome the tariffs but has stressed that this would not be secured at any cost.
Here, The i Paper looks at which UK industries will be affected by Trump’s tariffs – and where in the UK jobs are most at risk as a result.
Cars – Midlands and South East
Barret Kupelian, chief economist at PwC, said the impact of Trump’s tariffs on the UK “is significant”, but he warned: “Not all sectors will be hit equally: car exports will face higher tariffs. The regional impact also varies. Manufacturing-heavy areas like the West Midlands and East of England are especially exposed.”
Britain exported £8.3bn worth of cars to the US in 2024, and it is a critical market for high-end manufacturers such as Jaguar Land Rover, Mini, Bentley, and Rolls-Royce.
Whilst the UK car industry had already learned its fate, with a 25 per cent tariff on vehicles sent to the US announced last month, Wednesday’s announcement led to further dismay.
The Institute for Public Policy Research said that these tariffs could, over the longer term, put as many as 25,000 jobs in the car manufacturing industry at risk, with Jaguar Land Rover’s sites in Coventry and Solihull and the Cowley Mini factory in Oxford seen as the most exposed.
One industry body warned UK car manufacturers may have to “review output” and reduce the number of vehicles they make in response to a reduced demand.
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), described the US President’s announcement as “deeply disappointing and potentially damaging.”
Food and drink – Scotland and South West
Britain is a major exporter of salmon, chocolate and cheese to America.
Last year, the UK exported £75m worth of cheese to the US, making America the UK’s second-largest market for dairy exports outside of the EU.
The fear is that these products are price sensitive, and 20 per cent tariffs would result in significant reductions in sales – pushing up prices for US shoppers, which could have a knock-on effect on people in the UK.
The UK butter and cheese production industry employs around 8,000 people.
But Maryland Farm – the oldest surviving Cheddar maker and the largest exporter of cheese to the US of any independent business in the UK – based in Somerset, fears that Trump’s tariffs could hit jobs in the sector.
The Scotch whisky industry, which sends almost a billion pounds worth of spirits across the Atlantic, had already been targeted by Trump during his first term.
In 2019, the Trump administration slapped a 25 per cent tariff on Scotch whisky exports, resulting in £600m in lost exports, or roughly £1m per day.
The US is the biggest market for Scotch exports, worth £971m in 2024.
Steel and aluminium – Midlands and North East
Trump has also already imposed 25 per cent tariffs on steel and aluminium imports, and the impact of this is already felt.
Rajesh Nair, the Tata Steel UK chief executive, said £77m of sales to the US were at risk. The total value of Britain’s raw steel and aluminium exports to the US last year was about £470m.
Industry bodies like UK Steel have raised the alarm about the impact this could have on UK consumers and the economy as a whole.
Make UK, who represent a wide range of British manufacturers, described the tariffs as “devastating”.
John Warman, an ex-steelworker and councillor on Neath Town Council, told The i Paper in February that Trump’s steel tax could cost more jobs just months after around 2,000 workers were axed when the final blast furnace at the Port Talbot plant shut last year.