US car tariffs: Reeves’ refusal to respond is a "dereliction of duty"

27 Mar 2025

EMBARGO: Immediate Release

The Liberal Democrats have said the Government’s refusal to respond to US tariffs on the UK car industry is a “dereliction of duty,” and reiterated calls for ministers to prepare retaliatory tariffs including on Tesla. 

The party also said Number 10 should hold a summit today with UK car industry representatives to discuss a response to Trump’s trade war and how best to support jobs in the sector.

The Chancellor this morning said the UK is not planning to implement retaliatory tariffs. It comes after Keir Starmer said last week that “all options are on the table” when it comes to responding to Trump’s tariffs on steel.

The UK car industry is set to be hard hit by the new US tariffs: the US is the second biggest export market for UK carmakers after the EU.

Liberal Democrat Treasury Spokesperson Daisy Cooper MP said:

“The Government’s failure to prepare tariffs hitting back at Donald Trump’s trade war is a total dereliction of duty. What’s more, showing their hand before going into negotiations will only undermine our chances of getting a good deal and make us look weak in Trump’s eyes.

“Our car industry is being left at the mercy of Trump and his destructive trade war. We should be preparing to respond if needed including through Tesla tariffs that hit Trump’s crony Elon Musk in the pocket.

“It also looks like the right hand isn’t talking to the left hand, after Keir Starmer claimed that all options were on the table when it comes to responding to Trump’s tariffs whilst the Chancellor has ruled them out. 

“The Prime Minister also needs to urgently hold a summit with UK carmakers to discuss how best to respond and protect jobs in our world-leading car industry. Simply sitting back and hoping Donald Trump will be nice to us is not enough when British jobs are on the line.”

ENDS

Notes to Editor:
Keir Starmer’s previous comments that “all options are on the table” reported by BBC News.

 

 

 

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