US-UK trade deal has saved jobs at Jaguar Land Rover, says Mandelson

The UK’s constricted commercialized woody with the US has instantly prevented occupation losses astatine Jaguar Land Rover’s works successful the West Midlands, Britain’s ambassador to the US has said.

“This woody has saved those jobs,” Peter Mandelson said successful an interrogation connected CNN. “That’s a beauteous large achievement, successful my view, and I’m precise pleased that the president has signed it.”

Government sources said JLR had plans for imminent cuts among its 30,000 unit successful Solihull but had not informed unions successful the anticipation that a woody with the US could beryllium struck to destruct the 25% tariffs connected exports of cars to the US.

Related: New UK-US commercialized woody is simply a alleviation for Starmer but doubts, and tariffs, remain

Donald Trump’s import taxes had threatened to cripple British high-end carmakers earlier they were reduced from 27.5% to 10% successful a woody announced connected Thursday by Trump and Keir Starmer, with JLR lone past week resuming exports to the US aft a 30-day pause pursuing the US president’s announcement of tariffs past month.

Government insiders confirmed the determination to spell for a speedy woody portion they could, announcing what they said was a breakthrough agreement to destruct tariffs connected car and alloy exports.

“It was important to america to beryllium capable to slope the advancement that we had made astatine this stage,” said an insider.

The UK concern secretary, Jonathan Reynolds, told the BBC’s Newsnight programme connected Thursday that the UK was astatine hazard of thousands of radical losing their jobs successful the automotive assemblage wrong days, with 1 elder authorities insider indicating the occupation losses would person been astatine JLR.

Reynolds said: “This was very, precise serious. It means radical would person mislaid their jobs without this breakthrough, and it would person been a existent economical deed to the UK.

“We got to a presumption wherever we’re capable to marque announcements … that person averted immoderate precise hard things happening successful the UK.”

Darren Jones, the main caput to the Treasury, suggested the existent beingness interaction of the nonaccomplishment of thousands of jobs successful the car assemblage would person been acold deeper and could person affected much than 100,000 families employed straight and indirectly successful the sector.

Adrian Mardell, the JLR main executive, hailed the agreement, saying it would assistance to prolong 250,000 jobs. “We warmly invited this woody which secures greater certainty for our assemblage and the communities it supports,” helium said.

UK car exports to the US attracted a 2.5% tariff earlier Trump decided to slap a further 25% import taxation connected overseas cars.

The 25% tariff meant that, if passed connected to the consumer, the terms of the lowest-cost Range Rover Evoque could person risen by astir $12,500 (£9,400) and added $27,000 to an entry-level Range Rover that typically sells for much than $100,000.

Tariffs use connected transportation day alternatively than bid date, which means vehicles shipped past week volition nary longer beryllium subjected to the 25% tariff.