British Prime Minister Keir Starmer has pledged urgent support for the UK automotive industry, warning of serious economic fallout from newly imposed US tariffs on British goods.

Speaking at the Jaguar Land Rover (JLR) plant in the West Midlands on Sunday, Starmer described the situation as “a moment of reckoning,” citing “global instability” and the need for a measured response to trade tensions.

“Twenty-five per cent tariffs on automotive exports and ten per cent on other goods represent a major challenge to our future,” he said. “No one wins in a trade war. Nobody is pretending these tariffs are good news.”

Starmer’s remarks followed JLR’s announcement to temporarily suspend UK vehicle exports to the US for a month starting Monday. This decision comes as the company evaluates the impact of the tariffs and considers cost-cutting strategies. With the US accounting for a quarter of JLR’s 400,000 annual sales, the company is among the hardest hit.

JLR reported £6.5 billion ($8.27 billion) in revenue from the US in the fiscal year ending March 2024. The automaker employs 38,000 people in the UK and supports a vast supply chain across the West Midlands. Analysts warn that up to 25,000 jobs in the UK auto industry could be at risk if the tariffs persist.

In response, Starmer unveiled a support package for the sector, including:

• Greater flexibility for electric vehicle (EV) production targets
• A 20 per cent reduction in fines for non-compliance
• An extension of the hybrid vehicle phase-out date from 2030 to 2035

“These are challenging times,” Starmer told JLR workers, “but we are going to back you to the hilt.”

He also stressed that future trade agreements must protect British national interests, while committing to diversify trade beyond the US. “We will reduce global trade barriers, accelerate deals with other nations, and champion free and open trade worldwide,” he added.