The US market for British-made cars is of enormous consequence for the UK economy. Last year, the UK exported £9bn worth to America.
The sector was already reeling from Trump’s previously announced 25% US tariff on cars and light vehicles.
Mike Hawes, chief executive of the Society of Motor Manufacturers & Traders, says: “These tariff costs cannot be absorbed by manufacturers, thus hitting US consumers who may face additional costs and a reduced choice of iconic British brands.”
With Trump’s announcement on Wednesday of 10% US taxes on nearly all UK imports, the net will now widen to include the likes of electric motorcycle-maker Maeving.
Seb Inglis-Jones, co-founder and co-chief executive of the Coventry company, says that sales from the US are “ever evolving”. Last month, for example, 68% of sales came from America though typically, the US makes up about 40% of its £6m annual turnover.
Mr Inglis-Jones says that the US has helped counterbalance a less-than-optimistic economic outlook in Maeving’s other key markets such as the UK, France and Germany.
“In the US, there’s just more disposable income and so with a slightly more discretionary purchase like ours, a slightly more expensive British built electric motorcycle, Americans are just way more able to spend that money.”
He says that Maeving recently raised prices in the US, not as a pre-emptive move before tariffs but because the cost of doing business in the States had increased.
Will the company now lift prices again?
“We haven’t got that far,” says Mr Inglis-Jones. “I think we care more about, as a young EV [electric vehicle] company, about the growth and making sure the price is right for the US customer.
“If we can’t stomach it, we will have to put the prices up again.”
