A MANUFACTURER in Coventry will be faced with a ‘tough choice’ in the face of US tariffs, as a new study reveals the city will be the most likely in the UK to suffer as a result of the policy.
A study by the Centre for Cities estimated Coventry would be the most significantly affected city in the UK because of its existing car manufacturing industry, with 22.1 per cent of its exports estimated to be destined for the US.
Jamie White, MD at Exactaform – a Coventry-based precision cutting tools manufacturer which has clients including Airbus, BAE Systems, Red Bull and McLaren – said the tariffs would not only ‘significantly impact’ its own cost base – making operations more expensive – but also its customers’, particularly in the ‘already squeezed automotive sector’.
He added: “Around 30 per cent of our business is currently exported to the US, which amounts to over £3.8million annually.”
“We’ll be faced with a tough choice – absorb the increased costs ourselves, or pass them on to customers, which could make us less competitive.
“Currently, we offer a lot of added value, such as technical support – at no extra cost, which isn’t typical in the US market. That may need to change if costs rise, either by scaling back those services or introducing charges.
“Another potential impact is the need to consider offshoring manufacturing to the US to stay competitive. That’s something we’re reluctant to do, as we’ve proudly operated from the UK for over 45 years and want to keep supporting the UK economy.
“Lastly, we’re at the forefront of cutting tool technology and have been working to expand into the US, where such innovation isn’t as widespread. If it becomes unviable to operate in the US, that market will miss out on the benefits of this advanced technology.”
President Donald Trump announced the sweeping set of tariffs last week, including a 10 per cent tax on nearly all UK imports and 25 per cent on British cars.
Asked if the move could lead to job losses, Coun Jim O’Boyle, Coventry City Council’s cabinet member for jobs and regeneration, told the BBC the city was ‘resilient’.
He said: “Coventry will recover from this, we are not in a position where we are losing jobs.
“Nobody knows how this is going to end up, but we are resilient and highly-skilled.”
