The huge hike in import tariffs into the US which were later reduced for the º£½ÇÊÓƵ posed "an existential threat" to West Midlands car makers, a government minister has said.
Gareth Thomas, small businesses and exports minster, told BusinessLive he understood how vital the US market was for manufacturers in the region and that discussions continued over the new US-º£½ÇÊÓƵ trade deal.
In April, US President Donald Trump announced that cars imported into the US would be hit with a 27.5 per cent tariff - a huge climb from the previous figure of just 2.5 per cent.
The move initially prompted West Midlands manufacturer JLR to pause sending cars to America while Warwickshire-based Aston Martin announced it was limiting the number it would export.
There was a certain amount of relief when a revised deal was announced two weeks ago which meant º£½ÇÊÓƵ car makers would be subject to a ten per cent tariff for the first 100,000 cars exported to America.
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Mr Thomas told BusinessLive: "We have an ongoing discussion with the US so obviously we are going to be pushing for as much as we can do in terms of improving the trading relationship because we know how significant the car industry is to the West Midlands.
"What we recognised was that the tariffs at 27.5 per cent posed an existential threat to the industry here so we were determined to prioritise the car industry in the negotiations.
"We've done that but there's clearly more work to do. There's no question there were huge amounts of concern and I think people have been reassured by the deal that's been done and also reassured the Government gets the significance of what was being proposed.
"But, like every good business leader, those in the car industry have been pushing us to go further. We would love it to change again and go down further.
"Part of the challenge is to continue the discussion and we're doing that through the ambassador and negotiators in our department."
The export minister, who is also MP for Harrow West in London, was speaking at the 'Made in the º£½ÇÊÓƵ, Sold to the World' roadshow which was held at The ICC in Birmingham - the second in a series taking place across the country over the coming months.
The event aims to showcase the international trade opportunities available to domestic SMEs and brings together exporters with buyers and commercial officers from around the world.
Twenty exporters had stands at The ICC and among the wares on show were an electric truck, 3D printed jewellery and aero engine parts.
Mr Thomas said that, among the G7 countries, the º£½ÇÊÓƵ had the lowest percentage of SMEs exporting so the roadshows were aiming to change that.
"If we can get more SMEs exporting then that will be a key driver for growth," he added.
"The global uncertainty can put people off from exporting so we can use these roadshows to provide some reassurance."
Earlier this month, the º£½ÇÊÓƵ also announced a new trade deal with India which Mr Thomas said should prove a great boon to the West Midlands because of its strong Indian population here and increasing interest in this region from the nation's companies.
In 2023, Navi Mumbai-based IT services provider Hexaware opened a new operation in Birmingham and, during the 2022/23 financial year, India overtook the US to become the West Midlands' leading source of foreign-direct investment.
"The Midlands is one of those areas that stands to benefit from the India deal over the long term precisely because there is that strong Indian diaspora and therefore already quite strong links between industry here and India," Mr Thomas added.
"It is something which just has the potential to grow steadily in that sense and I hope what we'll see now is, for example, the Confederation of Indian Industry wanting to come here on a more regular basis, hopefully to invest more in the º£½ÇÊÓƵ.
"But also bringing the tariffs down will give a sense of encouragement to British businesses which perhaps have thought 'We know Indian is going to be a huge market at some point but it's complex and difficult'.
"Maybe they will think it is not so and they can dip their toes in that market.
"Part of the job we have going forward is what further practical help do we need to give some of the business here to get into the right area and talk to the right buyers in India."
