MALVERN MP Dame Harriett Baldwin has issued a cry for help to the Government after meeting with Morgan Motors to hear the impact of the new US trade agreement.
The MP was briefed that trade tariffs on cars exported from Malvern to America will quadruple as a result of the new trade agreement from 2.5 per cent up to ten per cent.
But the new ten per cent tariff rate – negotiated down from 25 per cent in a deal announced last week – will only apply to the first 100,000 cars exported across the Atlantic, after which the rate will be 25 per cent.
Last year, 106.000 cars were shipped to US ports from British manufacturers. Seventy per cent of Morgan Motors cars are exported with many customers living in the United States.
Dame Harriett met with managing director Matthew Hole to understand the pressure the company is facing following the announcement of the US trade deal.
The MP agreed to share the company’s concerns with Government Ministers as the car industry seeks to ensure manufacturers of all sizes are able to access the lower tariff rate.
Dame Harriett said: ”Morgan Motors exports most of its cars off the production line and it is looking to increase output.
“The news following the trade deal announcement was mixed with the company clearly concerned that higher tariffs are a serious barrier to trade.
“Any reduction of tariffs is welcomed but the overall car market is much worse off than it was at the start of the year.
“On top of this, the company is facing serious issues in its local supply chain with suppliers suffering as a result of the National Insurance jobs tax hike.
“I’ll be passing the message back to Westminster that the Government needs to do much more to support smaller car manufacturers and guarantee companies like Morgan are able to access the lower tariff rate.
“And I hope Ministers who are supposed to be championing growth hear the clear messages I am getting from local businesses that tax changes are harming, not helping their business prospects.”
