Here's what Donald Trump's 25% car import tariffs will mean for Nissan Sunderland and 6,000 jobs

The import tax means non US car vehicles being exported into the USA will now cost potential US customers an additional 25%, making it extremely difficult for foreign car manufacturers to compete on price with their US competitors.

It’s feared this will inevitably lead to non US cars being less attractive to prospective buyers which could have global repercussions for manufacturers such as Nissan.

Nissan employs around 6,000 people in Sunderland, where it makes the Qashqai and Juke SUVs, as well as the electric Leaf. In November (2024), the Japanese car giant announced plans to scale back production and cut 9,000 jobs across its worldwide operations.

The announcement inevitably caused concern here in Sunderland, but as yet, no jobs have been lost for the city’s manufacturing plant.

So what will the latest tariffs imposed by Trump mean for Nissan Sunderland and other North East car manufacturing plants?

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 North East 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.”

However Mr Butler is less optimistic about the impact on the wider UK motor manufacturing industry.

He said: “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 £7.6bn.

“This makes the US the third biggest market for British built cars behind the EU and UK markets, who account for 70% of all UK manufactured vehicles.

“The UK and US automotive industries have a long standing and productive relationship and we need to look at how we can work together to drive growth in both markets.

“A global trade war and tit-for-tat retaliations, will have an impact on global trade and lead to increased prices for UK consumers.

“The UK Government’s calm approach whilst seeking a trade deal will, hopefully, minimise any impact for UK consumers.”

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