British luxury car makers may still be hit by higher tariffs on US sales.
Last month, the UK car sector was breathing sighs of relief that it has escaped the highest American tariffs being proposed by US President Donald Trump but last week he announced that he may soon raise auto tariffs, aiming to encourage automakers to accelerate their investments in the US, it was reported.
This move comes amid ongoing discussions between automakers and the White House regarding the 25% tariffs previously imposed by Trump.
Trump said at a White House event on Thursday, “I might go up with that tariff in the not too distant future. The higher you go, the more likely it is they build a plant here.”
The Detroit Three automakers have expressed concerns over a recent deal that reduces tariffs on British car imports while maintaining them for Canadian and Mexican production.
The president has been pressing for more American made models to be bought in EU and UK and some car makers from the Far East have pledged to open US factories to get around the tariffs.
