British carmakers will meet ministers on Friday to discuss their response to US President Donald Trump’s placing 25% tariffs on car imports from next week, the BBC understands.
The UK government is trying to negotiate exemptions from a wide range of US import levies due to come into force at midnight on 3 April.
Some car companies believe it is now too late to delay the measure, and instead want to start discussing support options.
The UK has said it will “not be jumping into a trade war” with the US, in contrast with other nations such as Germany which has said it “will not give in” and urged Europe to “respond firmly” to the taxes.
Government sources said there is “still all to play for” in negotiations over 25% tariffs placed on car imports into the US ahead of next week.
Trump has used powers designed to avert national security threats to levy the tax.
Vehicles are the UK’s biggest export to the US, totalling 101,000 last year worth £9bn.
The industry is likely to ask for a support package from the UK government to manage the disruption.
The government is already consulting on changing the mandate for zero electric vehicles, which could end up costing UK manufacturers and subsidising importers such as Tesla, which is controlled by key Trump ally Elon Musk.
Other countries such as France and Canada have vowed trade retaliation against the US, with Canada’s new prime minister Mark Carney – the former governor of the Bank of England – saying his country would “fight” and that the longstanding Canada-US relationship is “over”.
Only a handful of ministers and officials know the content of the UK’s talks with the US administration, which are believed to be about the whole package of tariffs, not just the car sector.
While progress has been made, one negotiator said it will all come down to Trump.
Earlier this week he insisted there would be no carve-outs for car imports, but deals are being done across the globe over wider so-called “reciprocal tariffs” expected next week.
