{"id":80441,"date":"2025-05-07T00:05:11","date_gmt":"2025-05-07T00:05:11","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/80441\/"},"modified":"2025-05-07T00:05:11","modified_gmt":"2025-05-07T00:05:11","slug":"startling-impact-of-trump-tariffs-on-west-midlands-laid-bare-with-half-of-businesses-at-risk-of-harm","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/80441\/","title":{"rendered":"Startling impact of Trump tariffs on West Midlands laid bare with half of businesses at risk of harm"},"content":{"rendered":"

More than half of all businesses in the West Midlands would be hit by the US tariffs, finds\"ARobotics systems working on the chassis of a car at the JLR plant in Solihull(Image: Leon Neal\/Getty Images)<\/p>\n

More than half of all businesses in the West Midlands <\/a>could be left worse off by the impact of Donald Trump’s tariffs war, a startling rapid review revealed today, Wednesday, May 7.<\/p>\n

The region’s dependence on trade with the United States and its automotive industries makes it especially vulnerable, says the report commissioned by Richard Parker, Mayor of the West Midlands.<\/p>\n

As a result, securing a US trade deal ‘within 45 days’ – even if it is imperfect – is essential to avoid structural damage to the region’s economy and the wider UK car industry, said report author Steve Rigby, co-CEO of the Rigby Group.<\/p>\n

READ MORE: More bin lorry drivers walk out on strike leaving depots ‘struggling to collect rubbish’ – claim<\/a><\/strong><\/p>\n

No deal will cause long-term harm, he says.<\/p>\n

The report, \u2018Implications of New US Trade Tariffs for the West Midlands Economy\u2019, found Donald Trump’s proposed tariffs, including 25 per cent on auto vehicles, will affect the West Midlands more than any other UK region.<\/p>\n

The region is the biggest exporter to America of all regions of the UK, with cars making up the bulk of exports.<\/p>\n

Carmakers including Jaguar Land Rover<\/a> and Aston Martin, as well as multiple supply chain companies, help generate exports into the USA worth \u00a38.5bn a year to the West Midlands, with 61 per cent of the total coming from automotive exports.<\/p>\n

All 80,000 cars sold annually by Solihull-based Jaguar Land Rover (JLR) in the US are imported, most from the UK, while the US is Aston Martin and Bentley\u2019s largest sales region, accounting for 25%-40% of its sales volumes, the report revealed.<\/p>\n

There would be direct and knock-on impacts across the region – with 52 per cent of businesses predicting they expect to have to downgrade their profit forecasts by the end of the year as a result of tariffs. Currently on ‘pause’, if implemented as threatened they are forecast to cost the West Midlands economy \u00a36.2bn over five years.<\/p>\n

\"SteveSteve Rigby is co-chief executive of The Rigby Group(Image: Handout)<\/p>\n

Key findings from the report, which was compiled using data from CBI Economics and through extensive consultations with carmakers, manufacturers and other businesses across the West Midlands, also include:<\/p>\n

\u25cf 10 per cent long-term tariffs can be absorbed, but 25 per cent tariffs risk causing structural changes to businesses across the West Midlands<\/p>\n

\u25cf A less than perfect deal after 45 days is preferable to an improved one after 180 days. \u2018No deal\u2019 will have serious consequences for the West Midlands automotive sector within weeks<\/p>\n

\u25cf \u2060Government support is needed to improve cash management for businesses, reduce red tape and prevent HMRC from holding up payments.<\/p>\n

The report urged Government to heed the voice of the West Midlands businesses in ongoing negotiations. It was clear there was ‘no appetite for retaliatory measures’ locally.<\/p>\n

READ MORE: Jaguar Land Rover issues major export update after Donald Trump tariffs<\/a><\/strong><\/p>\n

But businesses also wanted assurance from Government that reducing or scrapping tariffs on the automotive industry should be a ‘non negotiable’ plank of discussions.<\/p>\n

The report also calls for actions to support domestic manufacturing including:<\/p>\n