President Donald Trump has now confirmed that the US will be introducing a 25% tariff on car imports, which will significantly impact the UK.
The car tariff on imports from all worldwide countries will come into effect after April 2nd. The same tariff amount will apply to motor vehicle parts from May.
While many analysts believe this will have a detrimental impact on US car production and raise prices for consumers, Trump believes the measures will lead to “tremendous growth” for the car industry.
The UK is sixth in value of the list of countries that the US buys cars from, after Mexico, Japan, South Korea, Canada and Germany.
The tariffs will be of considerable concern to the UK’s government and car industry, since over 18% of its car exports go to the US.
At £8.2 billion, cars are the UK’s biggest product exported to the US, with around £2 billion of duty now added to the cost overnight.
