UK car industry chief Mike Hawes warns that new 25% US tariffs could severely impact manufacturers, raising prices for American consumers and depressing demand. He said the tariffs, alongside existing 10% global levies, risk fuelling inflation and recession. Hawes urged the UK government to secure a deal to protect the sector. Report by Covellm. Like us on Facebook at http://www.facebook.com/itn and follow us on Twitter at http://twitter.com/itn
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00:00It's got a potential to be quite a damaging impact. I mean, 25% tariff is huge. That can't
00:07be absorbed entirely by the manufacturer. So it will be passed on to consumers, American consumers,
00:13and undoubtedly that will depress demand. On the top of it, we've got global tariffs at 10%,
00:20which again, you know, looking at the markets, we're seeing could be inflationary, could lead
00:25to recession. Again, that overall dampens global demand for vehicles in particular,
00:32because they're often a discretionary spend. So it's, you know, it is a real challenge for
00:36the industry right now. I think the approach the UK government's had at the moment is the right
00:39one. It's, you know, stay calm, stay cool, try and negotiate some sort of economic deal.
00:45We know the government is, you know, is particularly attuned to the challenge the
00:49automotive industry faces with 25% tariffs rather than the blanket 10%. So first of all,
00:56we want to try and secure the economic deal. It needs to have automotive and those other products,
01:02which are particularly highly tariffed under this new regime. But also, you know,
01:07until that deal is potentially done, is there any way of supporting the industry?