Car giant Jaguar Land Rover has paused all shipments to the US, causing concerns over 4,700 jobs in Halewood.
JLR confirmed the suspension on Saturday, April 5, stating it needed to “address the new trading terms”, after the White House introduced a 25% tariff on all car imports.
Halewood is the sole UK producer of the Land Rover Discovery Sport and Range Rover Evoque, making it one of the most exposed plants in the country.
The Merseyside JLR factory employs 3,700 people directly and supports a further 1,000 people indirectly through suppliers and contractors.
A new report by the Institute for Public Policy Research (IPPR) warns that 25,000 UK car industry jobs could be at risk as a result of the tariff, with posts at Halewood among the most vulnerable.
The US is the UK’s second-largest car export market after the EU, with trade worth £8.3bn in the 12-month period up to the end of the third quarter of 2024, according to the UK trade department.
Prime Minister Keir Starmer visited JLR’s West Midlands facility on Monday, April 7, urging calm in the face of economic turbulence.
Sir Keir said: “My message to you is simple: these are challenging times, but we have chosen to come here because we are going to back you to the hilt.
“As Rachel [Reeves] has said, there is no doubt about the challenge, but this is a moment for cool heads.
“No one wins from a trade war. But it is also a moment for urgency.
“Because we have to rise, together as a nation to the great challenge of our age, and it is the great challenge to renew Britain so that we are secure in this era of global instability.”
As part of his announcement, Sir Keir will officially reinstate the 2030 ban on the sale of new petrol and diesel cars, alongside adjusted manufacturing targets for electric vehicles to ease the transition.
Hybrid models will remain available for an additional five years.
He said: “We will keep calm and fight for the best deal with the US and we have been discussing that intensely in the last few days.
“But we’re also going to work with our key partners to reduce barriers to trade across the globe.
“We will accelerate trade deals with the rest of the world and champion the cause of free and open trade – right across the globe. And just like car building, that has always been our heritage – and we won’t turn our backs on it now.
“When it comes to the US, I will only strike a deal if it is in the national interest.
“If it is the right thing to do for our security.
“If it protects the pound in the pocket that working people, across our country, work so hard to earn for their family.”
The 25% tariff comes just months after the Liverpool Echo reported Merseyside workers could lose up to £400 per month due to upcoming shift changes this month.
The outcome of these trade negotiations will have significant implications for Liverpool’s car industry and the wider regional economy.
