Donald Trump's 25% car tariffs 'could destroy 25,000 UK jobs in car industry'

President Donald Trump's proposed 25 per cent tariffs on all car imports to the US could potentially lead to the loss of thousands of UK jobs, according to the Institute for Public Policy Research (IPPR).

The think tank predicts that approximately 25,000 jobs could be at risk due to Trump's tariffs set to come into effect on Wednesday, as reported by City AM.

Brands such as Jaguar Land Rover and Mini are among the most vulnerable, the IPPR stated, with their respective factories in Solihull and Oxford potentially facing closure.

The IPPR's estimates are based on the assumption that car companies may relocate abroad to evade tariffs.

UK vehicle exports to America, its largest trading partner, are valued at around £9bn.

The think tank estimated a total workforce of 263,000 in transport manufacturing and noted a 24 per cent drop in non-electric car exports between 2018 and 2022.

Pranesh Narayanan, a research fellow at IPPR, warned that the government's growth plans were "at jeopardy".

He said: "Trump's tariffs have huge potential to completely destabilise the UK car manufacturing industry, affecting tens of thousands of jobs."

The car manufacturing sector is already under significant pressure, with a reported 11.6 per cent decline in output in February, as per the Society of Motor Manufacturers and Traders (SMMT).

The UK is bracing for further impact as Trump prepares to announce additional tariffs on Wednesday, a day he has termed 'Liberation Day.'

Prime Minister Keir Starmer has aspirations to secure a trade agreement with the United States; however, there's no immediate sign that both nations will reach a deal any time soon.

Admitting to Trump's probable plans, Downing Street indicated on Wednesday that the UK is expected to be caught up in the broad tariffs on goods announced by the president as "Liberation Day."

The IPPR has taken a hopeful stance regarding Trump's proposed specific levies on car imports, as they encourage Chancellor Rachel Reeves to offer subsidies to industries involved in eco-friendly transport production and to work towards lowering trade hurdles with the European Union.