Trade war fear for £7billion of UK car exports
FEARS are growing that Donald Trump aims to follow up his steel tariffs with an attack that could cripple British car makers.
It is believed he may slap tariffs on cars, trucks and engine parts, devastating manufacturers across the EU and sparking a full-scale trade war.
The White House last month launched a “national security” probe into car and parts imports. A similar investigation into steel imports led to Trump imposing his aggressive tariffs yesterday.
Every year 17% of our £40billion car exports go to the US, our secondbiggest customer after the EU.
EU Trade Commissioner Cecilia Malmstrong said the prospect of the US President targeting cars and parts could cause “enormous damage”.
She accused him of playing a dangerous game after imposing 25% tariffs on steel imports and 10% on aluminium. The EU has since opened a case at the World Trade Organisation in a bid to get the move declared illegal but has so far stopped short of retaliatory action.
But Canada and Mexico – also hit by the tariffs – are imp- osing tariffs on a range of US imports, including whiskey, orange juice, steel and aluminium.
Theresa May was “deeply disappointed” by Trump’s move and said that the EU and UK would “work together to protect and safeguard our workers and industries”.
The Unite union said the car probe and threat of more import taxes were key planks of Trump’s America First agenda. Unite’s national officer for steel, Tony Brady, said: “A tit-for-tat trade war is in no one’s interest.”
Labour’s Shadow International Trade Secretary Barry Gardiner said: “We have to respond strongly and make it clear to Mr Trump that we’re not susceptible to the intimidation and the threats and the bullying that he’s putting in place.”