Birmingham Council’s leader and the West Midlands Mayor have acknowledged the challenges facing the region amid Trump’s tariff turmoil
Politicians across all three tiers of government in Birmingham have moved to reassure residents over US tariffs – but fears over the Midlands car industry remain.
President Trump sparked turmoil in the markets when he hit countries with a new set of tariffs on goods imported into the US.
A 25 per cent tariff on car imports triggered fears for the automotive industry in particular amid warnings the West Midlands region could be hit hard by the turbulence.
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As the economic fallout continued, Prime Minister Keir Starmer visited Jaguar Land Rover’s (JLR) flagship Solihull factory, which employs around 9,000 workers, on Monday, April 7.
He emphasised the importance of taking steps in the “national interest” and keeping a “cool and pragmatic head”.
“Jaguar Land Rover, our leading exporter of goods, employing thousands of people across the West Midlands and beyond,” he said. “That proud symbol of British engineering.
“It is our industrial heritage, but also in my strongly held view, it is our industrial future, not just our heritage.
“My message to you is simple: these are challenging times, but we have chosen to come here because we are going to back you to the hilt.”
Richard Parker, Labour Mayor of the West Midlands, struck a similar tone by acknowledging the impact of the tariffs but also pledging to protect businesses.
“I’m disappointed by the imposition of US tariffs and I recognise the concern this has caused for many businesses across the West Midlands,” he said.
“While I appreciate and understand the broader geopolitical and trade context, my absolute priority is to protect businesses, investment and long-term growth in our region.
“I’m in close contact with both the government and businesses based in our region to ensure the voice of the West Midlands is heard.”
“I joined the Prime Minister and Chancellor at JLR this week, as the automotive industry is acutely impacted by higher tariffs – and the West Midlands is home to the car industry.”
He said he had asked Steve Rigby, chief executive of the Rigby Group, to lead a “short, focused piece of work” to assess the potential impact of emerging tariffs.
“This report will identify the risks for key sectors in our region, set out options for local policy intervention and inform my ongoing engagement with the government as they continue to negotiate with the US,” he said.
“In the coming months, we will see a new national industrial strategy from the government – one focussed on growing the UK economy and industries.
“I’m working closely with ministers to make sure that this strategy supports a strong, sustainable future for the West Midlands – one that protects our industrial base and ensures we remain a globally competitive region.”
‘Consequences are considerable’
Trump’s tariffs were also a talking point during a Birmingham City Council meeting this week.
Roger Harmer, leader of the council’s Liberal Democrat group, argued a trade war had been declared on the world “by the economically-illiterate Trump administration”.
He warned: “The West Midlands is likely to be particularly badly hit – especially the automotive sector.”
“Those consequences are considerable for the people of this city,” John Cotton, leader of the council, acknowledged.
“I’ve already been engaged in conversations with some of our employers around these issues and we will make appropriate representations to government around the negotiations that are taking place internationally as well.
“I think it’s really important we do all we can to ensure there’s stability within our local economy.”
A budget report, published earlier this year, said heightened instability within the ‘global financial context’ could have a knock-on effect on the council and warned about “new trade tariffs imposed by major economies”.
During a visit to the HS2 Curzon Street Station this month, the government’s chief secretary to the treasury Darren Jones MP was asked whether Birmingham can have a bright economic future despite such instability.
“Look, we don’t want tariffs – we think it’s disappointing that we’ve ended up with tariffs,” he said.
“A trade war globally is not in anyone’s interest – not at country level or indeed a city level where you’re maybe thinking about your debt costs and your ability to secure investment.”
Mr Jones continued: “The UK had a better outcome compared to other countries in terms of American tariffs with the lowest possible rate, which is an indication of our engagement in the run-up to the President’s announcements yesterday.
“Our conversations had included already negotiating a trade deal with the American administration which we think will be in the interests of the US and UK.
“We’re now just working at pace to be able to include that and we hope that will resolve some of the situations and help put us on a more stable footing going forward.”