President Trump has hit international car manufacturers with 25% tariffs (Image: Getty)
Britain's car industry will suffer a “devastating double blow” this week with manufacturers hit by President Trump’s 25% tariffs and Rachel Reeves’s “jobs tax”. The “one-two punch” will leave carmakers worse off by ￡2.1billion every year, Conservatives have calculated.
They claim the increase in National Insurance contributions will “hammer” the sector by ￡200million just as international competition intensifies. There are fears plants will close and surviving workers will be hit with wage cuts unless the UK can secure a free trade deal with the United States.
Neuropathy and Nerve Damage? Try This ImmediatelyWellnessGuide| Sponsored Sponsored
Learn more
Undo
DON'T MISS
Powered by
Keir Starmer warns Donald Trump's tariff chaos is a 'new era' and 'world has changed'
10 Comments
The everyday UK items that will soar under Trump tariffs - from kitchen foil to cars
85 Comments
Tories accuse Labour of 'staggering hypocrisy' over Sir Sadiq Khan pub announcement
33 Comments
Rachel Reeves facing legal action from care homes over national insurance tax raid
119 Comments
Donald Trump leaves Rachel Reeves in 'tatters'. She'll hike this stealth tax to fight back
110 Comments
Britain urged to do two things to win 'trade war' against US as Trump move set to backfire
55 Comments
Keir Starmer and Rachel Reeves dodge April 1 bill hikes while millions of Britons suffer
260 Comments
Bank of England could do two things as Brits warned of major job losses
Comments
Personal tax threshold warning for 'every working household' as ￡400 bill looms
5 Comments
Brexit may spare Britain the worst from Donald trump's tariffs bombshell
325 Comments
Warning Labour's national insurance raid could hike your council tax bill even more
23 Comments
Labour plans to raid millions of pension funds to 'reduce security' for recipients
22 Comments
Trump given embarrassing wake-up call as Liberation Day tariffs 'will leave US worst off'
12 Comments
FTSE 100 plunges to one year low after Trump tariffs rock markets
2 Comments
Prefab Houses for Seniors at the Lowest Prices in YearsPrefab Houses | Search Ads| Sponsored Sponsored
Click Here
Undo
Britain's pubs hit with ￡4,000 jobs-threatening tax bomb
164 Comments
Rachel Reeves poised to turn screw with expert issuing devastating warning
44 Comments
Your Zodiac Sign's Perfect Dog Matchsmart-newsfeeds.com| Sponsored Sponsored
Learn More
Undo
Keir Starmer has UK game-changer at his fingertips - he just needs to change one thing
35 Comments
Garden centres are being battered by Rachel Reeves in 'triple whammy' tax hit
31 Comments
Eat 1 Teaspoon Every Night, See What Happens a Week LaterHealth Wellness Journal| Sponsored Sponsored
Watch More
Undo
Tories say Starmer is planning more huge tax rises as they spot chilling clue in response
34 Comments
UK economy dealt another blow as job adverts 'plummet by nearly a quarter'
3 Comments
Here’s What a 6-Hour Gutter Upgrade Should Cost You In 2025HomeBuddy| Sponsored Sponsored
Undo
Keir Starmer warns Donald Trump's tariff chaos is a 'new era' and 'world has changed'
10 Comments
The everyday UK items that will soar under Trump tariffs - from kitchen foil to cars
85 Comments
Watch What Happens After Trying This Chuck Norris 2 Min Routine For EnergyRoundhouse Provisions| Sponsored Sponsored
Learn More
Undo
Tories accuse Labour of 'staggering hypocrisy' over Sir Sadiq Khan pub announcement
33 Comments
Rachel Reeves facing legal action from care homes over national insurance tax raid
119 Comments
Fight Nail Fungus and Keep Your Nails HealthyOkita Nail Fungus Light| Sponsored Sponsored
Learn More
Undo
Donald Trump leaves Rachel Reeves in 'tatters'. She'll hike this stealth tax to fight back
110 Comments
Britain urged to do two things to win 'trade war' against US as Trump move set to backfire
55 Comments
Achy Knees in Las Vegas? Do This!Wellnee Patches| Sponsored Sponsored
Learn More
Undo
Keir Starmer and Rachel Reeves dodge April 1 bill hikes while millions of Britons suffer
260 Comments
Bank of England could do two things as Brits warned of major job losses
Comments
Just In: A Proven Way To Start Getting Rid Of Credit Card DebtAmerican Debt Digest| Sponsored Sponsored
Learn More
Undo
Personal tax threshold warning for 'every working household' as ￡400 bill looms
5 Comments
Brexit may spare Britain the worst from Donald trump's tariffs bombshell
325 Comments
Plastic Surgeon Explains How to Rewind Skin in Your Kitchen TodayRadiantatanyage| Sponsored Sponsored
Learn More
Undo
Warning Labour's national insurance raid could hike your council tax bill even more
23 Comments
Labour plans to raid millions of pension funds to 'reduce security' for recipients
22 Comments
Family Cancels Care Home Plans After Dad Tries Japanese DeviceUS Medicine Today| Sponsored Sponsored
Learn More
Undo
Trump given embarrassing wake-up call as Liberation Day tariffs 'will leave US worst off'
12 Comments
FTSE 100 plunges to one year low after Trump tariffs rock markets
2 Comments
Britain's pubs hit with ￡4,000 jobs-threatening tax bomb
164 Comments
Rachel Reeves poised to turn screw with expert issuing devastating warning
44 Comments
Keir Starmer has UK game-changer at his fingertips - he just needs to change one thing
35 Comments
Garden centres are being battered by Rachel Reeves in 'triple whammy' tax hit
31 Comments
Tories say Starmer is planning more huge tax rises as they spot chilling clue in response
34 Comments
UK economy dealt another blow as job adverts 'plummet by nearly a quarter'
3 Comments
Keir Starmer warns Donald Trump's tariff chaos is a 'new era' and 'world has changed'
10 Comments
The everyday UK items that will soar under Trump tariffs - from kitchen foil to cars
85 Comments
Tories accuse Labour of 'staggering hypocrisy' over Sir Sadiq Khan pub announcement
33 Comments
Rachel Reeves facing legal action from care homes over national insurance tax raid
119 Comments
Donald Trump leaves Rachel Reeves in 'tatters'. She'll hike this stealth tax to fight back
110 Comments
Britain urged to do two things to win 'trade war' against US as Trump move set to backfire
55 Comments
Keir Starmer and Rachel Reeves dodge April 1 bill hikes while millions of Britons suffer
260 Comments
The warning comes as Jaguar Land Rover has said it will “pause” shipments to the US. Sir Keir Starmer is expected to relax rules on electric car sales this week to help the sector survive the tariffs which came into force on Thursday.
Shadow Business and Trade Secretary Andrew Griffith said: “This week lays bare two of Labour’s worst blunders: failing to fix our US trade relationship and slamming businesses with a punishing jobs tax. British firms are already on their knees — now Labour delivers a one-two punch that could flatten them.
“They don’t understand that it’s business, not big government, that drives growth. If they don’t reverse course fast, working people will pay the price.”
Sponsored
WalletJump| Sponsored Sponsored
Learn More
Seniors Born 1941-1979 Receive 55 Benefits This Month if They Ask
Undo
Tories say the tariffs and tax hike amount to a “devastating double blow” and have attacked the Sir Keir Starmer for using his “supermajority” to force through the employers’ National Insurance contributions increase.
Shadow Chancellor Mel Stride urged renewed action to get a deal in place with the United States, saying: “[What] we’ve got to do as a country is to get in and negotiate that free trade with America so we can get a carve out from that and really spare ourselves the effects of that. And that’s where I think the Government should have moved more quickly in terms of getting into the room and hammering out a deal, so they’ve really got to step up now and get that done.”
According to a Tory analysis, there are more than 198,000 people employed in the automotive manufacturing sector and wages are around 13% higher than the UK average.
Concerns about the impact of the National Insurance increase go far beyond the manufacturing sector.
Don't miss...
Rachel Reeves's poll rating slumps to Liz Truss territory [LATEST]
Labour has pushed UK into 'moment of economic peril' [LATEST]
Nightmare for Rachel Reeves as cost of living crisis returns [LATEST]
Rachel Reeves given devastating verdict by voters in new poll [LATEST]
The British Retail Consortium warned that the increase in NICs, when combined with the rise in the National Living Wage, has forced up the cost of employing people in entry level jobs by more than 10%.
It expects the two changes to cost the sector more than ￡5billion a year, rising to ￡7billion when a new “packaging tax” comes into force in October.
The BRC warns 160,000 part-time retail roles – more than 1 in 10 – are at risk of being lost in the next three years.
Helen Dickinson, the industry body’s chief executive, said: “The Chancellor’s October Budget is now hitting retailers with an extra ￡5billion on their employment bill. When coupled with the new packaging tax in October, retailers’ costs will have spiralled by ￡7bn in a single year. Given slim retail margins of just 2-4%, these additional costs mean higher prices, fewer jobs and fewer stores. A recent survey of retail finance directors showed that half were planning to reduce hours and workers as a direct result of the employer NIC hike.”
Don't miss...
'Growth reaction shows vast gulf between Thatcher and Reeves' [LATEST]
'Honey, I blew up the economy' – a disastrous day for the Chancellor' [LATEST]
'Rachel Reeves faces day of reckoning as jobs tax backfires' [LATEST]
Rachel Reeves' emergency announcement is desperate attempt to save her own skin [LATEST]
Trending
SUBSCRIBE Invalid email
We use your sign-up to provide content in ways you've consented to and to improve our understanding of you. This may include adverts from us and 3rd parties based on our understanding. You can unsubscribe at any time. Read our Privacy Policy
Warning it will be “part-time jobs which take the biggest hit,” she said: “While the cost of employing someone in a full-time entry-level position rose by over 10%, for a part-time worker it is over 13%. Part-time retail jobs hit their lowest level since records began in 1996, and have fallen by 200,000 in the last seven years.”
DON'T MISS
Powered by
Keir Starmer warns Donald Trump's tariff chaos is a 'new era' and 'world has changed'
10 Comments
The everyday UK items that will soar under Trump tariffs - from kitchen foil to cars
85 Comments
Tories accuse Labour of 'staggering hypocrisy' over Sir Sadiq Khan pub announcement
33 Comments
Rachel Reeves facing legal action from care homes over national insurance tax raid
119 Comments
Donald Trump leaves Rachel Reeves in 'tatters'. She'll hike this stealth tax to fight back
110 Comments
Britain urged to do two things to win 'trade war' against US as Trump move set to backfire
55 Comments
Keir Starmer and Rachel Reeves dodge April 1 bill hikes while millions of Britons suffer
260 Comments
Bank of England could do two things as Brits warned of major job losses
Comments
Personal tax threshold warning for 'every working household' as ￡400 bill looms
5 Comments
Brexit may spare Britain the worst from Donald trump's tariffs bombshell
325 Comments
Warning Labour's national insurance raid could hike your council tax bill even more
23 Comments
Labour plans to raid millions of pension funds to 'reduce security' for recipients
22 Comments
Trump given embarrassing wake-up call as Liberation Day tariffs 'will leave US worst off'
12 Comments
FTSE 100 plunges to one year low after Trump tariffs rock markets
2 Comments
Over 40 and Struggling With Belly Fat? Try 1 Teaspoon Daily (See Results Fast!)Health Benefits | Sponsored Sponsored
Watch Now
Undo
Britain's pubs hit with ￡4,000 jobs-threatening tax bomb
164 Comments
Rachel Reeves poised to turn screw with expert issuing devastating warning
44 Comments
These Weird Pouches Keep Rodents Out? Mice and Rats Can't Stand Them!Vamoose| Sponsored Sponsored
Learn More
Undo
Keir Starmer has UK game-changer at his fingertips - he just needs to change one thing
35 Comments
Garden centres are being battered by Rachel Reeves in 'triple whammy' tax hit
31 Comments
Cardiologist: Teaspoon On an Empty Stomach Slims WaistHealth Wellness Journal| Sponsored Sponsored
Watch More
Undo
Tories say Starmer is planning more huge tax rises as they spot chilling clue in response
34 Comments
UK economy dealt another blow as job adverts 'plummet by nearly a quarter'
3 Comments
Innovative Muscle Stimulator From Nevada Burns Fat and Supports Muscle GainTotal Health Journal| Sponsored Sponsored
Undo
Keir Starmer warns Donald Trump's tariff chaos is a 'new era' and 'world has changed'
10 Comments
The everyday UK items that will soar under Trump tariffs - from kitchen foil to cars
85 Comments
Discover Antarctica Cruises 2025 (Save Big)Cruises To Antarctica 2025 | Search Ads| Sponsored Sponsored
Undo
Tories accuse Labour of 'staggering hypocrisy' over Sir Sadiq Khan pub announcement
33 Comments
Rachel Reeves facing legal action from care homes over national insurance tax raid
119 Comments
Doctor Reveals: The Hidden Hormone Sabotaging Your Weight Loss After 40herbodhi.com| Sponsored Sponsored
Learn More
Undo
Donald Trump leaves Rachel Reeves in 'tatters'. She'll hike this stealth tax to fight back
110 Comments
Britain urged to do two things to win 'trade war' against US as Trump move set to backfire
55 Comments
Empty Cruises Departing That Seniors Can Book For CheapSearchPad |Search Ads| Sponsored Sponsored
Explore
Undo
Keir Starmer and Rachel Reeves dodge April 1 bill hikes while millions of Britons suffer
260 Comments
Bank of England could do two things as Brits warned of major job losses
Comments
Do This 1 Thing Every Morning, Watch What Happens [Video] USWalletSaver| Sponsored Sponsored
Undo
Personal tax threshold warning for 'every working household' as ￡400 bill looms
5 Comments
Brexit may spare Britain the worst from Donald trump's tariffs bombshell
325 Comments
(Limited 50% Off)Men's Leather Handmade Breathable Water SandalsReliefFoot？| Sponsored Sponsored
Shop Now
Undo
Warning Labour's national insurance raid could hike your council tax bill even more
23 Comments
Labour plans to raid millions of pension funds to 'reduce security' for recipients
22 Comments
I FINALLY Found A Lip Color That Survives Coffee, Meals & Kisseswonderskin| Sponsored Sponsored
Click Here
Undo
Trump given embarrassing wake-up call as Liberation Day tariffs 'will leave US worst off'
12 Comments
FTSE 100 plunges to one year low after Trump tariffs rock markets
2 Comments
Britain's pubs hit with ￡4,000 jobs-threatening tax bomb
164 Comments
Rachel Reeves poised to turn screw with expert issuing devastating warning
44 Comments
Keir Starmer has UK game-changer at his fingertips - he just needs to change one thing
35 Comments
Garden centres are being battered by Rachel Reeves in 'triple whammy' tax hit
31 Comments
Tories say Starmer is planning more huge tax rises as they spot chilling clue in response
34 Comments
UK economy dealt another blow as job adverts 'plummet by nearly a quarter'
3 Comments
Keir Starmer warns Donald Trump's tariff chaos is a 'new era' and 'world has changed'
10 Comments
The everyday UK items that will soar under Trump tariffs - from kitchen foil to cars
85 Comments
Tories accuse Labour of 'staggering hypocrisy' over Sir Sadiq Khan pub announcement
33 Comments
Rachel Reeves facing legal action from care homes over national insurance tax raid
119 Comments
Donald Trump leaves Rachel Reeves in 'tatters'. She'll hike this stealth tax to fight back
110 Comments
Britain urged to do two things to win 'trade war' against US as Trump move set to backfire
55 Comments
Keir Starmer and Rachel Reeves dodge April 1 bill hikes while millions of Britons suffer
260 Comments
This Tiny Hearing Aid Is Changing Lives—And It’s Under $100Oricle Hearing Aid
Undo
by Taboola by Taboola
Sponsored Links Sponsored Links
Promoted Links Promoted Links
Who Is Overcharging You For Your Car Insurance In Nevada?roadguardhub
Undo
by Taboola by Taboola
Sponsored Links Sponsored Links
Promoted Links Promoted Links
Millionaire Offers Shelter To This Homeless Refugee. He Faints When He Returns Home And Sees Thisuniversalinfonet.com
Undo
by Taboola by Taboola
Sponsored Links Sponsored Links
Promoted Links Promoted Links
What’s Your Perfect Dog Based on Your Zodiac Sign?smart-newsfeeds.com
Undo
by Taboola by Taboola
Sponsored Links Sponsored Links
Promoted Links Promoted Links
She added: “While the Government’s welfare reforms aim to increase the numbers in work, this week’s cost increases will kick away the ladder for many who are just getting their first foothold.”
A government spokesperson said: "This government is committed to ensuring the British automotive industry remains competitive on the world stage, including through more than ￡2.3bn invested into the electric vehicle transition.
"Our once-in-a-Parliament budget confirmed over ￡2 billion to support the automotive sector including the manufacturing of zero-emission vehicles and its supply chain, providing the long-term certainty that industry needs to invest in advanced, greener technologies."