Automotive-reliant firms nervous over Trump tariffs

Business owners in a West Midlands town say they are nervous about the impact of Donald Trump's automotive tariffs on the town's economy.

The US President has placed a 10% tariff on UK goods, but 25% on all imports of cars and car parts.

Jaguar Land Rover (JLR), which paused all shipments to the US in the wake of the announcement, employs 9,000 people in Solihull.

David Banks, assistant manager of The Tea Chest, a cafe close to the manufacturer's Lode Lane facility, said he was concerned about residents having less to spend.

"Being so close [to the factory] we do have a lot of local people," he told BBC Breakfast.

"There's lots of nervousness with businesses in the local area."

The Touchwood Shopping Centre is a focal point for the town, featuring more than 80 stores and 20 bars and restaurants.

General manager Tony Elvin also believes uncertainty in the wake of the tariffs could hit local spending.

"JLR being such a big employer in the area, there's that general uncertainty that lack of confidence that stops people going out and spending money," Mr Elvin said.

President of Solihull Chamber of Commerce Emma-Louise Hewitt works with local firms on a daily basis.

"A lot of the businesses at the moment are going to look to incur the costs themselves and not pass them on to the customers," she said.

"But very much at the moment it's a wait and see what's going to happen."

Ian Jameson, who runs a local building business, fears JLR employees may pause work they have already asked him to do.

"The people who will be affected most will be the workers at the factory," Mr Jameson said.

"Those people are the customers of much smaller businesses. On the macro level you've got the supply chain, but behind that you've got a whole service industry which helps them and supports them."

Last year, the UK sold £9bn in cars to the US. Speaking during a visit to JLR in Solihull on Monday, Sir Keir Starmer pledged government support for the sector.

But Steve Horne, the chief executive of GSF Car Parts, which has its headquarters in Wolverhampton, said the tariffs were going to "reverberate across the whole automotive industry".

"The whole supply chain could be disrupted," he said, adding GSF was trying to mitigate the disruption for "hard-working independent garages".

Mark Field is the chief executive of the IAAF - a federation based in Birmingham representing automotive businesses.

He said the tariffs would have "a real big knock-on effect" on automotive businesses, including those not directly exporting to the US, in terms of both jobs and skills.

When asked if the tariffs could be likened to the repercussions of Brexit, Mr Field said: "I think with Brexit there was a bigger lead time so we understood the rules of the game.

"But this is very similar - the level of uncertainty and lack of consistency is really apparent."

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