Toyota to build more cars in Britain in free trade boost
Toyota is to begin building sports cars for the US market in Derbyshire, delivering a boost to British manufacturing weeks after Sir Keir Starmer struck a free trade deal with Donald Trump.
The Japanese carmaker is poised to spend about $56m (£41.3m) on a production line used to make GR Corollas for American buyers, Reuters said on Tuesday.
The move would help the company bring down wait times for the car in North America. About 10,000 cars a year will be made at Toyota's existing factory in Derbyshire, where output has fallen in recent years.
Mr Trump announced plans to hit Japanese carmakers with a 25pc tariff in April. The government in Tokyo has been pushing to have this repealed amid worries it could hammer the nation's automotive industry. Roughly 9m cars are built in Japan annually, of which about 1.5m are exported to the US.
The US president initially hit British-made cars with a 25pc tariff when he kicked off his global trade war in April. However, the rate was reduced to 10pc for 100,000 cars per year after Sir Keir Starmer signed a trade deal with Mr Trump earlier this month.
Toyota declined to comment when approached by The Telegraph. Sources familiar with the situation told Reuters the company's decision was not directly linked to high tariffs imposed on Japanese carmakers by US president Donald Trump.
Regardless, the decision to establish a manufacturing hub in Britain to serve the US is likely to be seized upon as a benefit of the US-UK free trade deal.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
South Wales Guardian
17 minutes ago
- South Wales Guardian
NHS set for boost of up to £30bn as other budgets feel squeeze
The Department of Health is set to be handed a 2.8% annual increase in its day-to-day budget over a three-year period. The cash injection, which amounts to a rise of about £30 billion by 2028, or £17 billion in real terms, will see other areas including police and councils squeezed, The Times newspaper reported. Sir Keir Starmer has pledged to ensure that by the next election 92% of patients in England waiting for planned treatment are seen within 18 weeks of being referred. Latest NHS data suggests around 60% of people are currently seen in this time and figures released last month showed the overall number of patients on waiting lists had risen slightly from 6.24 million to 6.25 million. Chancellor Rachel Reeves has acknowledged that she had been forced to turn down requests for funding in a sign of the behind-the-scenes wrangling over her spending review. She insisted the blame for the tight economic situation lay with the Conservatives rather than her rigid rules on borrowing and spending. The Chancellor said despite a £190 billion increase in funding over the spending review period 'not every department will get everything that they want next week and I have had to say no to things that I want to do too'. On top of the increase in day-to-day spending, funded in part by the tax hikes Ms Reeves set out in her budget, looser borrowing rules will help support a £113 billion investment package. Economists have warned the Chancellor faces 'unavoidably' tough choices when she sets out departmental spending plans on June 11. The Institute for Fiscal Studies (IFS) think tank said defence and the NHS will dominate the review, raising the prospect of cuts to other unprotected departments.
The Herald Scotland
25 minutes ago
- The Herald Scotland
NHS set for boost of up to £30bn as other budgets feel squeeze
The cash injection, which amounts to a rise of about £30 billion by 2028, or £17 billion in real terms, will see other areas including police and councils squeezed, The Times newspaper reported. Sir Keir Starmer has pledged to ensure that by the next election 92% of patients in England waiting for planned treatment are seen within 18 weeks of being referred. Latest NHS data suggests around 60% of people are currently seen in this time and figures released last month showed the overall number of patients on waiting lists had risen slightly from 6.24 million to 6.25 million. Chancellor Rachel Reeves has acknowledged that she had been forced to turn down requests for funding in a sign of the behind-the-scenes wrangling over her spending review. She insisted the blame for the tight economic situation lay with the Conservatives rather than her rigid rules on borrowing and spending. The Chancellor said despite a £190 billion increase in funding over the spending review period 'not every department will get everything that they want next week and I have had to say no to things that I want to do too'. On top of the increase in day-to-day spending, funded in part by the tax hikes Ms Reeves set out in her budget, looser borrowing rules will help support a £113 billion investment package. Economists have warned the Chancellor faces 'unavoidably' tough choices when she sets out departmental spending plans on June 11. The Institute for Fiscal Studies (IFS) think tank said defence and the NHS will dominate the review, raising the prospect of cuts to other unprotected departments.
Reuters
28 minutes ago
- Reuters
BOJ must ensure fiscal considerations don't overtake mandate, deputy governor says
TOKYO, June 7 (Reuters) - The Bank of Japan should make clear it is not monetising government debt by ensuring that fiscal considerations do not take precedence over its goal of achieving price stability, Deputy Governor Shinichi Uchida said on Saturday. Central banks can theoretically print unlimited amounts of money and completely finance government debt, which poses delicate questions around their huge government bond purchases conducted to revive their economies, Uchida said. Central banks see "monetising," or directly financing government deficits, as taboo, as doing so risks letting inflation get out of control and potentially eroding their independence. Such unconventional monetary easing steps taken since the 2008 financial crisis present a challenge for central banks across the globe, he said in a speech. The BOJ's monetary easing, for its part, was aimed at achieving its 2% inflation target, and not at funding government debt, Uchida said. "In considering what constitutes monetary financing or not, the important question is whether monetary policy is compromised by fiscal considerations," Uchida said. In deploying and rolling back monetary easing, the BOJ must focus on achieving its economic and price mandate. "The result must be that the Bank does not deviate from such policy conduct out of fiscal considerations," he said. "In its future conduct of monetary policy, the Bank should make it clear that it is not engaging in monetary financing." The remarks come against the backdrop of growing pressure from opposition and ruling parties on Prime Minister Shigeru Ishiba to increase budget spending ahead of an upper house election due next month. Some analysts have blamed concerns over Japan's worsening finances for pushing up super-long bond yields to record highs last month, and complicating the BOJ's efforts to taper its huge bond purchases. Under a radical monetary easing programme deployed in 2013, the BOJ increased purchases of government bonds and adopted a policy of capping long-term interest rates around zero. While the BOJ ended the policy last year, its short-term policy rate is still at 0.5%. The central bank plans to lay out in June a new bond tapering plan for fiscal 2026 and beyond as part of its effort to normalise monetary policy.
