North East automotive cluster thought to escape main impact of tariffs, as UK set to take a hit

The North East automotive sector is not thought to be in the direct firing line of swingeing tariffs imposed by US president Donald Trump, but it could feel wider secondary impacts.

As the lynchpin of the region's cluster, Nissan's Sunderland operation produces cars destined for the UK and European market. However, a number of its neighbouring North East suppliers - including Faltec Europe, Nifco and Kasai UK - make components for other manufacturers, among them prestige brands such as Jaguar Land Rover, which is thought to be more at the mercy of a blanket 25% rate applied to cars built outside of the US.

Paul Butler, CEO of the North East Automotive Alliance said: "The blanket 25% tariff on all cars and car parts imported to the US announced by President Trump is disappointing but not surprising. However, these tariffs will not have an adverse effect on the NE automotive sector as Nissan Sunderland do not export to the US and the number of suppliers exporting to the US is minimal – though, due to the global nature of the automotive sector, they will, undoubtedly, impact parent companies of North East operations.

"For the wider UK automotive sector it will have an impact, particularly for some of the more iconic brands from the UK. Last year the UK exported over 101,000 cars to the US with a total value of £7.6