Against the backdrop of a downgraded Spring Forecast and a forever precarious global economic environment, Donald Trump’s imposition of a 10% tariff on all UK imports to the US hasn’t exactly landed at an ideal moment for the UK economy.
Keir Starmer’s government is rolling out a reactionary support package to ‘help shelter vulnerable sectors’ from these tariffs. Certain commodities are subject to higher tariffs, for example, car exports face tariffs of 25%, rather than 10%.[1] In a speech in the West Midlands, the Prime Minister vowed to “step up, not stand aside” in backing British industry.[2] Key pillars of the UK’s new industrial strategy are being fast-tracked. For example, carmakers will get extra breathing room on green mandates: the government is easing Britain’s 2030 petrol car phase-out deadline, exempting smaller manufacturers and allowing sales of hybrid vehicles until 2035.
Other struggling sectors are also expected to receive support. Reports indicate that the government plans to assist life sciences and other industries by reducing bureaucracy and easing planning regulations to encourage investment.[3] In short, the government is seeking to soften the impact of tariffs by providing direct aid to industries, avoiding retaliatory trade measures, and reinforcing its domestic growth strategy.
But what regions across the UK will be hit the hardest, and what lessons can be learned?
Where will the tariffs hurt the most?
Trump’s tariffs will have an uneven impact across the UK based on regional specialisms.
Cars and medicinal products make up over 25% of the UK’s exports to the US
UK exports to the US (value and proportion) (2023/24)
The West Midlands, The South East, and the East of England are England’s most significant exporters to the US
Proportion of total exports from the UK to the US by English region (2023/24)
The West Midlands, heart of Britain’s car industry, is poised to take the hardest hit. Analysts estimate the region could lose over £330m in export value each year due to the introduction of the tariffs, more than any other part of the UK. [4] The Centre for Local Economic Strategies estimates that the average fall in UK exports to the US is estimated at around 4% if tariffs are imposed at the planned level of 10%. [5] However, this £330m drop in export value for the West Midlands would represent 9% of the total export value from the West Midlands to the US relative to 2023/2024 figures. [6]
This isn’t really a surprise. The West Midlands is the nation’s top exporter of cars to the States, and home to the likes of Jaguar Land Rover (JLR). In Solihull, where JLR’s main plant employs 9,000 people, locals fear the tariffs could “kill Jaguar Land Rover here in the town” and have an “enormous knock-on effect” on the community. [7] JLR has already reacted by suspending all U.S. shipments for a month while it devises a long-term workaround for the 25% car levy. Communities across the Midlands will experience tough times if US orders dry up.
North West England and other manufacturing hubs are also vulnerable. The East of England, with its pharmaceutical, aerospace, and defence exporters, could see annual exports to the US fall by approximately £240m. [8] A similar story is expected for the South East.
An opportunity?
The fallout from US tariffs is uneven, exposing how vulnerable some UK regions remain to global shocks. The West Midlands, the North West, and parts of the East of England, all with strong export specialisms, now face the largest impacts. However, that exposure also reveals where future resilience can be built.
Rather than short-term fixes, this is a chance to deepen the government’s place-based approach through devolution. Devolving more powers to mayors and local leaders could enable better-targeted support for affected sectors with local leaders able to identify key employers and exporters. The process of devolution can also allow for better identification of regional weaknesses in the first instance, leaving local authorities less exposed in the long-term.
After the imposition of these tariffs, it will be important to align industrial policy with identified local strengths, such as electric vehicle innovation in the West Midlands, pharmaceuticals in the East, and advanced manufacturing in the North. [9]
By targeting support both by sector and by place, the government can use this disruption to achieve the aims of the industrial strategy: more sustainable growth, stronger local economies, and a fairer regional balance.
[1] BBC News, 2025. Carmakers mull action over tariffs as JLR pauses car exports to US
[2] The Guardian, 2025. Government will step in to support key industries amid tariff turmoil, says Starmer
[3] The Guardian, 2025. Government will step in to support key industries amid tariff turmoil, says Starmer
[4] CLES, 2025. Analysis: The UK regions set to be hit hardest by Trump’s tariffs
[5] CLES, 2025. Analysis: The UK regions set to be hit hardest by Trump’s tariffs
[6] DfBT, 2025. Trade and Investment Factsheet: United States
[7] The Guardian, 2025. ‘It would affect the area massively’: fear in Solihull as home of Jaguar plant awaits impact of Trump tariffs
[8] CLES, 2025. Analysis: The UK regions set to be hit hardest by Trump’s tariffs
[9] Invest West Midlands, 2021. Emerging Tech Capabilities in the West Midlands
