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Trump Imposes 10% Tariffs on UK and European Goods, Threatens 25% Unless Greenland Deal Reached

UK carmakers face sharp export pressures, with warnings that a weakened sector could shed tens of thousands of jobs.

Overview

  • The measures start on February 1 at 10% for goods from the UK, Denmark, Norway, Sweden, France, Germany, the Netherlands and Finland, rising to 25% on June 1 unless a Greenland purchase agreement is reached.
  • Analysts say UK auto exports could face an effective hit of up to 35% on vehicles, threatening sales to a US market worth about £10bn in the 12 months to June.
  • The IPPR warns that as many as 25,000 UK automotive jobs could be lost if exports to the United States collapse under higher levies.
  • Industry figures report UK vehicle output at 710,298 in November, a 16.7% year-on-year drop, after a major cyber attack shut Jaguar Land Rover production for months.
  • Carmakers and motor finance providers caution they cannot absorb further costs, signaling potential price increases, paused shipments and weaker residual values for premium brands reliant on US sales.