West Midlands firms feel Trump tariffs leave an uncertain future

BBC News

03-04-2025

Firms across the West Midlands say the future feels uncertain as they brace themselves for the impact of the new US import tariffs.US President Donald Trump, has announced a long list of tariffs that include, a universal 10% tariff on products imported to the US and a 25% tariff on the global car industry.Nick Grey, owner of the floor cleaning and garden product firm GTech, said the change was "even worse" for his company as the products it exports to the US come from China, which has been hit with a 54% tariff. Mr Grey added that the business, which has its headquarters in Worcester, had been working towards expanding in the US, but said the plans were now "in tatters".
"[The tariff is] usually 2% and it's built into your business model, but now this is huge," he explained.He said he understood what Trump was trying to do, but "a longer term view" was needed."We've spent three years working to expand business in the US," he said.
'We need time to think'
In facing challenges previously he said he had "just coped"."In time, you have to cope, you can't just go home and give up because everyone loses their jobs and you have no income," added Mr Grey."[But] I'm not really sure with this one, we just need time to think".Darren Mather-Hutchinson, who owns Axiski, a ski/snowboard shop in Worcester, said his products can be used on snow, sand and frost, so the firm has a large customer base in the US."For 10 years it's been my baby, my passion, but with this news, it dulls the fun," he said."It's going to make it nigh-on impossible for me to find a customer who will buy my goods and then expect them to either pay for the tariffs or I somehow subsidise it."
He added that the tariffs meant he may need to "restructure" the business and said he would have to consider moving production to the US."The last thing I want to do is pull the plug, but I am having to explore options," he said."There is such a demand in North America for my product, but I need to find a way to make it amenable for myself as a business person and for my customers."
'Profound impact for Midlands cars'
Prof David Bailey, of Birmingham Business School, said the 25% tariffs on the car industry would have "a really profound impact" on the Midlands as it was the UK's "number one exporting region" to the US. For the Coventry-based manufacturer Jaguar Land Rover (JLR), for example, the US market accounts for about a quarter of its total revenue. JLR, which also has sites in Solihull and Wolverhampton, said its luxury brand had a "global appeal" and its business was "accustomed to changing market conditions"."Our priorities now are delivering for our clients around the world and addressing these new US trading terms," a spokesperson said.
Andy Palmer, former CEO of luxury car maker Aston Martin, which has its headquarters in Gaydon, said the 25% tariff on cars was "bad news for everybody"."That cost will be passed to the American customer, which will inevitably lead to a reduction in volumes, as will retaliatory tariffs on US goods coming into countries around the world," he said."The reduced volumes mean we all end up having to reduce our workforces. Job losses are inevitable."
He said companies like JLR would be looking at other markets to "offset the US losses".The car industry works on "very small margins" and the 25% tariff had the potential to "wipe out all profits", Mr Palmer said."The industry hates uncertainty, so while our government needs to react with a cool head it also can't take a long time."Unite the Union has urged the government to make sure workers do not "pay the price" for the US decision to impose new tariffs.
'Other markets could open'
Staffordshire-based JCB, which manufactures construction equipment, has announced it plans to "double the size" of a factory currently being built in Texas, in the belief while the tariffs will bite, the impact will not be long term.JCB CEO Graeme Macdonald said: "In the short term, the imposition of tariffs will have a significant impact on our business."However, in the medium term, our planned factory in San Antonio will help to mitigate the impact."Anton Gunter, managing director of Telford-based shipping company Global Freight, said the announcement was "shocking for the world"."We're going to have to work harder and we're going to have to rely on the government to push British products and British manufacturing to the US and to the world for that matter," he said.But Mr Gunter said he remained optimistic. "While one market gets more expensive other markets could then open," he added.
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