It has been less than a week since the US President sent global stock markets into freefall after announcing tariffs on almost every country in the world, including the UK.<\/p>\n
Speaking from a Jaguar Land Rover plant in the West Midlands earlier this afternoon, Keir Starmer promised to back the car sector \u201cto the hilt\u201d after it was hit with 25% tariffs.<\/p>\n
\u201cNobody is pretending that tariffs are good news. You know that better than anyone. 25% tariffs on automative exports. 10% on other goods.<\/p>\n
\u201cThat is a huge challenge to our future. The global economic consequences could be profound.\u201d<\/p>\n
\u2018Relax self-imposed fiscal rules\u2019<\/p>\n
In response to the tariffs, Starmer watered down electric car vehicle targets, extending the timeline for phasing out petrol cars and giving luxury automakers an exemption. He also pledged to cut red tape to make manufacturing cars less expensive.<\/p>\n
However, leading trade union chiefs have called on him to go further.<\/p>\n
Spring Statement: List of councillors quitting over welfare amid further cuts<\/a><\/p>\n While major affiliate union Unite\u2019s general secretary Sharon Graham said the announcements were welcome, she urged the government to also relax its fiscal rules to allow more investment.<\/p>\n \u201cIn the wake of the US tariffs it is more important than ever that this government focuses on supporting UK manufacturing and defending jobs.<\/p>\n \u201cWhile today\u2019s announcement by the government on ZEVs and hybrids is welcome, it is not enough to reverse the damage being done to a UK automotive sector in crisis, which has already lost one plant and includes several others at high risk.<\/p>\n \u201cWe urgently need to look at additional measures such as VAT exemptions and if we can\u2019t get a real jobs plan for the sector in time for 2030, we will need to go back to the 2035 deadline for all ICE vehicles.<\/p>\n \u201cTo generate growth and jobs for the future, UK manufacturing across the piece will also need reductions in industrial energy costs, protections for UK steel and a relaxation of self-imposed fiscal rules to allow more investment.\u201d<\/p>\n \u2018The UK is badly exposed due to double-whammy of Brexit and tariffs\u2019<\/p>\n Trades Union Congress general secretary Paul Nowak warned that working people must not pay the price for tariffs, as he called for a closer relationship with the EU.<\/p>\n \u201cActing quickly to secure a closer trading relationship with the EU was common sense before Donald Trump launched a global trade war \u2013 and it\u2019s even more important now.\u201cThe UK economy has been hit by a double whammy of a botched Tory Brexit deal and Trump tariffs. This has left us badly exposed.<\/p>\n \u201cIt\u2019s time for a new approach that honours the referendum result while giving us a much-needed trading reset with our closest neighbours to boost British jobs and manufacturing.\u201d<\/p>\n However, the Prime Minister\u2019s spokesman ruled out any plans on rejoining the customs union.<\/p>\n He added: \u201cWe do think we can have a better trading relationship with the EU.\u201d<\/p>\n Meanwhile the Institute for Public Policy Research also weighed in behind Nowak\u2019s calls for stronger EU ties.<\/p>\n Marley Morris, associate director at IPPR, said: \u201cIn response to the Trump administration\u2019s tariff hikes, the government needs to double down on an ambitious trade strategy.\u00a0 This means strengthening our trade defences, deepening our trading relationship with the EU, and pursuing free trade deals with other key partners.<\/p>\n \u201cThe government should also roll out a locally-driven programme of export support to help businesses to adapt to the new global trade landscape.\u201d<\/p>\n Labour climate group says carmaker changes are \u2018understandable\u2019<\/p>\n There does not appear to have been significant pushback for now within Labour to the watering down of targets, however.<\/p>\n Paul McNamee, director of the Labour Climate and Environment Forum, said: \u201cIn such an unstable economic landscape, it is understandable for Labour to be tweaking rules to best support British industries. They are being absolutely clear that the future of vehicle manufacturing in the UK is an all-electric one.<\/p>\n \u201cThey have reversed Rishi\u2019s decision and confirmed the 2030 ban on petrol and diesel vehicles. And the Prime Minister has stated that all-electric vehicles will be central to UK industry for years to come. The Chancellor and Prime Minister correctly identified that net zero and clean British energy are currently the greatest source of investment into the UK \u2013 and a vital part of the upcoming industrial strategy.<\/p>\n \u201cWe have known for a long time that electric vehicles and clean energy will be vital tools in the fight against climate change. But its now clear they will also help keep the UK more secure in a Trump-tariff world.\u201d<\/p>\n Ben Carter, Executive Director of SERA, Labour\u2019s affiliated environment group, said: \u201cThe global economic circumstances have changed and the Labour government has to respond to that in a way that will allow our industries to survive and thrive as the UK transitions to net zero.<\/p>\n \u201cWe call on the government to ensure that there is certainty and clarity for the car manufacturers and that the progress that has been made so far doesn\u2019t stall.\u201d<\/p>\n \u00a0<\/p>\n For more from LabourList, subscribe to our daily newsletter<\/a> roundup of all things Labour \u2013 and follow us <\/strong>on\u00a0 <\/strong>Bluesky<\/a>, WhatsApp<\/a>, <\/strong>Threads<\/a>,\u00a0<\/strong>X<\/a> or <\/strong>Facebook .<\/a><\/strong><\/p>\n\n
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