Construction and agricultural equipment firm JCB has said it will expand its US operations in response to President Trump’s tariffs. The effect on the firm’s 8,000 UK jobs is not yet unclear.
Lord Bamford, chairman of the British company, said it would double the size of its new factory in Texas and “make even more products in the US” after Trump announced global tariffs.
The firm said its UK business would be “significantly impacted” by the move to introduce trade tariffs and will now double the size of existing plans to build a new factory in San Antonio, Texas.
JCB, which has its headquarters in Uttoxeter, Staffordshire, is the world’s third-largest construction equipment manufacturer by volume, operating 22 plants around the world in making over 300 different products. It employs more than 19,000 people worldwide, 8,000 of whom are in the UK.
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JCB chief executive Graeme Macdonald said that in the medium term, the company’s planned factory in San Antonio would help to mitigate the impact of the tariffs.
He said: “We are thankful that the tariff is only 10% and we can only hope that the UK government will conclude negotiations on a trade deal in the coming days and weeks.”
JCB operates an existing manufacturing plant in Savannah, Georgia, which employs around 1,000 people, and last year bought 400 acres of land in San Antonio. The company broke ground on a project to build a new 500,000 square foot factory in June last year. This will be now be expanded to one million square feet.
Lord Bamford said: “JCB has been in business for 80 years this year and we are well accustomed to change.
“The United States is the largest market for construction equipment in the world and President Trump has galvanised us into evaluating how we can make even more products in the US, which has been an important market for JCB since we sold our first machine there in 1964.”
Asked about JCB’s plans, a Downing Street spokesman said it was a commercial decision but he added: “Our approach to business is to engage, to listen and to act in a pragmatic way, and although we recognise that the UK is in a relatively more favourable position than other countries, the impact on the UK will be real, and our focus is working with businesses to analyse the impacts of this decision and to continue to work with the US to lower trade barriers.”
Meanwhile, UK car makers are said to be reviewing whether to cut production after the industry was hit with 25% tariffs on exports to the US. About 17% of all cars made for export in the UK are shipped to the US, with brands in the luxury market, including Jaguar Land Rover and Aston Martin, being particularly exposed.
Senior executives from several industries were invited to a meeting at Downing Street to be briefed on the government’s next steps yesterday morning.
Prime minister Keir Starmer has said he will continue to engage with businesses and to seek an economic deal with the US to lessen the impact of the levies.
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