A growing number of vehicle manufacturers around the world are expressing concern about tariffs that could come into effect following Donald Trump’s election victory.

Trump won the race to become the 47th president of the United States by promising big changes to the country’s domestic policy, including new ways to support the auto industry.

In a speech at a pre-election rally in Michigan, often considered the center of American vehicle manufacturing, Donald Trump promised heavy tariffs on imported models.

He explained: “This is the deal I will offer to every major company and manufacturer on the planet: I will give you the lowest taxes, the lowest energy costs, the lowest regulatory burden, and free access to the biggest and best market on the planet.” .

“But only if you make your product here in the United States. It all goes away if you don’t make your product here. If you don’t make your product here, then you’re going to have to pay a tariff, a very substantial tariff.” “

coach reports that the move could cause panic in the UK industry, particularly among five luxury brands (JLR, Bentley, Aston Martin, Mclaren and Rolls-Royce), which accounted for the majority of the 73,571 exports made to the US in 2023.

Comments made by President-elect Donald Trump were particularly directed at companies setting up factories in both Mexico and China.

Both countries have recently seen an increase in vehicle production, with Mexico’s automotive production increasing by around 68 percent between 2016 and 2024.

Many car companies use the two countries due to lower labor costs, which translates into greater profitability and cheaper prices at service stations.

Michigan, David Christ, group vice president and general manager of the Toyota division, said that producing vehicles entirely in the United States would be a difficult task, since various components usually come from around the world.

He added: “The issue with tariffs doesn’t affect the car so much as it affects the parts. The global supply chain is so large and so diverse that it would be really difficult to build all the parts in one place.

“So the tariffs may not affect the car because it’s made in the United States, but they could affect a lot of the parts that go into the car, which raises the price for the consumer.”

Speaking to Euronews, Simon Schuetz of the German Automotive Industry Association (VDA), an industry body representing the interests of brands such as Volkswagen, BMW and Mercedes-Benz, called for talks to prevent European vehicle manufacturers from becoming subject to loading.

He continued: “I think both sides need to talk to prevent this. If it happens, we both know what will happen next. European Union he would probably have some measures in response, and that would be the start of another trade conflict or something like that.

“That is not what we need. Europe and the United States must understand that, when considering geopolitical challenges, we must work together, and that politics and economics must be considered together.”