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UK Cities Ranked by Exposure to US Trade Levies: Impact of Trump Tariffs
New research has assessed the vulnerability of British cities to recently imposed US trade tariffs, revealing which areas face the most significant economic repercussions. These tariffs, initiated by the United States, target major exporters and could have wide-ranging consequences. While some tariffs have been temporarily paused, the United Kingdom, initially facing a 10 percent tariff, remains significantly impacted.
Manufacturing Hubs Face Greatest Risk from US Tariffs
British urban centers with a strong manufacturing base are anticipated to bear the brunt of the US levies. These industrial heartlands, heavily reliant on exports to the United States, are particularly susceptible to the new trade barriers.
Coventry Identified as Most Vulnerable City
Data from the Centre for Cities think tank indicates that Coventry, a key hub for UK car manufacturing, is projected to experience the most substantial negative impact from the tariffs. The city’s prominence in the automotive industry makes it especially dependent on exports affected by the US tariffs.
Automotive Industry Hit Hard by Levies
In addition to the general 10 percent tariff on British goods, a 25 percent charge is being applied to British automobiles and components used in car production. This poses a significant challenge to cities like Coventry.
Coventry is home to the headquarters of Jaguar Land Rover, a major employer in the region. Historically significant in British automotive history, Coventry was the birthplace of the first UK-manufactured car in 1897.
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Jaguar Land Rover acknowledged the tariff impact, stating last week that they were ‘enacting short-term actions including a shipment pause in April’.
The company further commented, ‘Our luxury brands possess global appeal and our business is resilient, accustomed to fluctuating market conditions. Our immediate priorities are serving our customers worldwide and adapting to these new US trading terms.’
Coventry’s High Export Exposure to the US
Coventry exhibits the highest degree of exposure to US goods exports, with 22.1 percent of its export volume directed towards the United States.
Conversely, York, identified as the least affected among Britain’s 62 largest cities, demonstrates a minimal exposure of just 2.7 percent.
Capital Cities Less Exposed
Edinburgh and London are also positioned favorably, with export exposure rates of only 2.9 percent and 3.2 percent, respectively.
This lower vulnerability is largely attributed to their economies being centered on service industries rather than goods production.
Expert Analysis on Uneven Tariff Impact
Paul Swinney, Director of Policy and Research at the Centre for Cities, commented on the uneven distribution of the tariff impact across the UK. “The direct consequences of the new US trade tariffs on the UK are not uniform,” Swinney stated.
“Regions where manufacturing constitutes a larger proportion of the local economy are inherently more reliant on exporting goods, including exports to the US.”
He added, “These areas often correlate with weaker local economies that have a lower concentration of employment in high-paying service sectors.”
Derby and Telford Among Most Affected
Following Coventry, Derby is identified as the second most vulnerable city, with 19.9 percent exposure to the tariffs. Derby’s economy is rooted in manufacturing for sectors like aerospace, automotive, and train production, and it serves as the home of Rolls-Royce, a prominent jet engine manufacturer.
Telford, another manufacturing center specializing in the automotive and defense industries, ranks as the third most impacted. This Shropshire town has a US export exposure rate of 17.3 percent of its overall exports.
Other Cities Facing Significant Impact
Worthing, Blackpool, Hull, Plymouth, and Birmingham are also listed among the cities most likely to be negatively affected by the US trade measures.
Concerns for Weaker Local Economies
The Centre for Cities cautioned that local economies already facing challenges, such as those with lower productivity levels, are anticipated to experience even greater hardship under the newly implemented tariffs.
Temporary Pause on Additional Tariffs but UK Still Affected
While the US announced a 90-day pause on the most recent round of additional tariffs shortly after their implementation, a 10 percent blanket levy remains in effect. This ensures that the UK will continue to be affected. Furthermore, tariffs on goods from China have been increased to 125 percent amid escalating trade tensions between the two global economies.