US President Donald Trump has announced a new 25% tariff on all imported cars, threatening UK producers’ largest single export market.
Signing an executive order, Mr Trump said the tax would kick in on 2 April – what he has called “liberation day”.
This is when all his retaliatory import tariffs are supposed to take effect, but they have been delayed before.
The move ratchets up the global trade war Mr Trump himself kicked off at a time when his administration is battling the continued fallout from the Signalgate security breach in Washington.
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14:42
Impact of US tariffs on UK industry
Speaking late on Wednesday, Mr Trump said the proposal: “Will continue to spur growth. We’ll effectively be charging a 25% tariff.”
Similar duties on all car part imports are expected to follow in May, complicating the effects as even American car makers source components from around the world – meaning they could also face higher costs and lower sales.
There was swift condemnation of the latest threats, especially within countries worst affected in both volume and value terms including Mexico, Canada, South Korea and Germany.
The UK car industry also faces further damage from the tariffs at a time when it is already weakened by poor demand for new vehicles, domestically and abroad. Cheaper competition from China is also weighing heavily globally.
Manufacturers such as Jaguar Land Rover, Bentley, Aston Martin and Rolls-Royce stand to be worst affected.
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3:09
Ex-Aston boss fears tariff pain for UK firms
Official data shows that the US is the UK car sector’s largest single market by country, accounting for £6.4bn worth of car exports in 2023. That is 18.4% of the total.
Again, however, the UK government signalled it would not retaliate – mirroring its response to the tariffs on steel and aluminium imposed globally by the Trump administration earlier this month.
While chancellor Rachel Reeves condemned the fresh protectionism, she told Sky’s Wilfred Frost: “We’re not at the moment in a position where we want to do anything to escalate these trade wars.”
The remark will be seen as a nod to continuing UK trade deal talks with the US.
Listed European car and car parts manufacturers saw further steep declines in their share prices in Thursday trading as the plans drew widespread international criticism.
Canadian Prime Minister Mark Carney called it a “direct attack” on Canadian workers.
Even Trump advisor Elon Musk, the Tesla boss, admitted in a post on his X platform that the hit to his company would be “significant”.
During his second term, Mr Trump has used tariffs frequently as a trade weapon.
Image: Donald Trump announcing the 25% tariff on imported cars.
He cited plans from South Korean car maker Hyundai to build a $5.8bn (£4.5bn) steel plant in Louisiana as evidence the economic measures would bring back manufacturing jobs.
Even American and foreign firms already with domestic plants still rely on Canada, Mexico and other countries for parts and finished vehicles – meaning prices could increase and sales decline as new factories take time to build.
Tariffs are a key part of Mr Trump’s efforts to reshape global trade relations.
He plans to impose what he calls “reciprocal” taxes on 2 April that would match tariffs and sales taxes levied by other nations.
He has already placed a 20% tax on all imports from China.
Similarly, he placed 25% tariffs on Mexico and Canada, with a lower 10% tariff on Canadian energy products in addition to the duties on all steel and aluminium imports, including those from the UK.
Sky News understands the UK government is continuing to engage with the US on a trade deal and remains hopeful an agreement could be made before the tariffs come into force, but may retaliate if deemed necessary at a later date.
Mike Hawes, the chief executive of the UK car industry lobby group the SMMT, said: “Today’s announcement by President Trump is not surprising but, nevertheless, disappointing if, as seems likely, additional tariffs are to apply to UK made cars.
“The UK and US auto industries have a long-standing and productive relationship, with US consumers enjoying vehicles built in Britain by some iconic brands, while thousands of UK motorists buy cars made in America.
“Rather than imposing additional tariffs, we should explore ways in which opportunities for both British and American manufacturers can be created as part of a mutually beneficial relationship, benefitting consumers and creating jobs and growth across the Atlantic.
“The industry urges both sides to come together immediately and strike a deal that works for all.”
Lynn Calder, CEO of INEOS Automotive said: “This is what happens when politicians sit on their hands. As a growing EU-based automobile brand, we are vulnerable to tariffs, and we need our politicians to support our business, our jobs and our economies. We need urgent and direct political intervention on tariffs.
“Fortunately, we have been planning for tariffs but there is only so much we can do to protect US customers from price rises.”
At least 82 people have died in flash flooding in Texas as the search continues for dozens still missing.
At least 41 people remain missing, including at least 10 girls and one councillor still unaccounted for from Camp Mystic in Kerr County, a Christian summer camp for girls along the Guadalupe River.
At Camp Mystic at least 27 people died, the camp confirmed in a statement to Sky’s US partner NBC News. It said it is working with local and state officials to try to locate those who remain missing.
“This tragedy has devastated us and our entire community. Our hearts are broken alongside the families that are enduring this tragedy, and we share their hope and prayers,” Camp Mystic added.
Image: A man helping with the search for missing campers reacts while stopping on the road near Camp Mystic. Pic: AP/Julio Cortez
Image: Rescue workers are seen on land and a boat as they search for missing people near Camp Mystic. Pic: AP/Julio Cortez
Image: A person removes bedding from sleeping quarters at Camp Mystic. Pic: AP/Julio Cortez
The director of the camp, Dick Eastland, was among those killed in the floods. He died trying to save the campers “he so loved and cared for”, his grandson George said on social media.
Water burst from the banks of the Guadalupe River and began sweeping into Kerr County and other areas around 4am local time on Friday, killing at least 68 people, including at least 28 children and 40 adults.
In nearby Kendall County, two people have died. At least six people were killed in Travis County, while at least four people died in Burnet County. In both Williamson and Tom Green counties, at least one person has died.
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US President Donald Trump has signed a “major disaster declaration” for Kerr County to ensure that rescuers get the resources they need.
Image: A map showing the Guadalupe River in Kerr County, which burst from heavy rain and caused flash flooding
Image: Vehicles ride through a flooded road, following flash flooding, in Hunt, Texas. Pic: Reuters/Marco Bello
Image: Officials ride a boat as they arrive to assist with a recovery effort at Camp Mystic. Pic: AP/Julio Cortez
Rescue crews have already saved hundreds of people and would work around the clock to find those still unaccounted for, Texas governor Greg Abbott pledged, adding that there were at least 41 people confirmed to be missing.
Mr Abbott asked relatives of people who may have been camping in Kerr County to contact local authorities, as it was difficult to know just who is missing due to the number of people who may have been camping in the area unofficially.
“There are people who are missing who are not on the ‘known confirmed missing’ because we do not know who they are,” he said at a news conference last night.
Meanwhile, police are collecting DNA from family members to help identify those who have died in the floods.
Image: A military helicopter flies by over the Guadalupe River after a flash flood swept through the area. Pic: AP/Julio Cortez
Image: A vehicle rests against vegetation near a cabin, following flash flooding, in Hunt, Texas. Pic: Reuters/Marco Bello
Colonel Freeman Martin, from the Texas Department of Public Safety, said there are several “unidentified” people at funeral homes, both adults and children.
The DNA collected from relatives was flown to the University of North Texas in Dallas.
“We will have rapid DNA in hours, not days, to get some closure and information back to those families,” Colonel Freeman Martin said.
He also said the death toll is certain to rise over the next few days.
Image: A vehicle pulled from the water after the deadly flooding in Kerrville, Texas. Pic: Reuters/Sergio Flores
Image: Rescuers paddle an inflatable boat as they search along a waterway following flash flooding, in Kerrville. Pic: Reuters/Marco Bello
This comes as Mr Abbott indicated that the danger wasn’t over yet either, as additional rounds of heavy rains lasting into Tuesday could produce more “rapid flash flooding events”, especially in places already saturated.
The governor urged drivers to be “extraordinarily cautious” for the next 48 hours due to the potential floods, as some people across Texas died when they were swept away in vehicles.
“Rising water on roads can occur very rapidly. You may think you can drive through it, only to find out when you’re in there that it is too late and you are getting swept away,” he said.
“You don’t need to get from point A to point B if you are going to risk your life,” he added, telling people to “turn around, don’t drown”.
Details of those who have died and those who are missing after US flash floods are slowly emerging – with several young girls among those unaccounted for.
At least 69 people have died from the flooding in Texas, with an unknown number of people – including 11 girls and a counsellor from Camp Mystic in Kerr County – still missing.
As much as 10ins (25cm) of heavy rain fell in just a few hours overnight in central Kerr County on Friday, causing the banks of the Guadalupe River to burst at around 4am local time.
Tributes to those who died, and appeals for those who are still missing, are now being shared.
Image: Officials said 27 girls from Camp Mystic were reported missing after the flash floods in Texas
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3:35
Texas searches for missing children
Who are the victims?
Renee Smajstrla, eight
Image: Renee Smajstrla. Pic: Family handout
Renee’s uncle Shawn Salta confirmed the eight-year-old had died, and said she was one of 700 children staying at Camp Mystic.
“Renee has been found and while not the outcome we prayed for, the social media outreach likely assisted the first responders in helping to identify her so quickly,” he said.
“We are thankful she was with her friends and having the time of her life, as evidenced by this picture from yesterday.
“She will forever be living her best life at Camp Mystic.”
Sarah Marsh, eight
Image: Sarah Marsh. Pic: Family handout
Mountain Brook mayor Stewart Welch confirmed the death of eight-year-old Sarah, from Alabama, who was a pupil at Cherokee Bend Elementary.
“This is an unimaginable loss for her family, her school, and our entire community,” he said. “Sarah’s passing is a sorrow shared by all of us, and our hearts are with those who knew and loved her.
“As we grieve alongside the Marsh family, we also remember the many others affected by this tragedy.”
Eloise Peck and Lila Bonner, both nine
Image: Lila Bonner (left) and Eloise Peck. Pic: Family handout
Eloise’s mother Missy Peck told local broadcaster FOX4 that her daughter and Lila were best friends and cabinmates at Camp Mystic.
Writing about her daughter on Instagram, Ms Peck said: “She lost her life in the tragic flooding… our family is grieving and processing this unimaginable loss together.”
Lila’s family told NBC Dallas Fort Worth, a local affiliate network of Sky’s US partner network, that they were in “unimaginable grief”, and said: “We ache with all who loved her.”
Janie Hunt, nine
Image: Janie Hunt
Janie’s family confirmed her death to a reporter from NBC Dallas Fort Worth, who said “her mother tells me she’s devastated”.
Richard ‘Dick’ Eastland, owner of Camp Mystic
Image: Richard ‘Dick’ Eastland, owner of Camp Mystic. Pic: Family handout
Kerr County judge Rob Kelly told the Washington Post that Mr Eastland, who owned the camp died in a helicopter on the way to a Houston hospital.
Local outlet The Kerrville Daily Times reported he was killed while trying to save the girls from the flash floods.
“It doesn’t surprise me at all that his last act of kindness and sacrifice was working to save the lives of campers,” guest columnist Paige Sumner said in the Daily Times’ tribute to Mr Eastland.
Blair and Brooke Harber, 13 and 11
Image: Blair and Brooke Harber. Pic: Family handout
RJ Harber told CNN his daughters died during flooding in Kerr County, saying Blair “was a gifted student and had a generous kind heart”.
He added that Brooke “was like a light in any room, people gravitated to her and she made them laugh and enjoy the moment”.
He also said both his parents were still missing.
Jane Ragsdale, owner of Heart O’ the Hills camp
Image: Jane Ragsdale. Pic: Heart O’ the Hills
On Heart O’ the Hills’s website, the camp confirmed it was “right in the path of the flood” along the Guadalupe River.
While there were no campers in residence, Jane Ragsdale died. The camp said: “We at the camp are stunned and deeply saddened by Jane’s death.
“She embodied the spirit of Heart O’ the Hills and was exactly the type of strong, joyful woman that the camp aimed to develop with the girls entrusted to us each summer.”
Julian Ryan, 27
Image: Julian Ryan. Pic: GoFundMe
Relatives of Mr Ryan told local news broadcaster KHOU 11 that he died saving his family from floodwaters in Texas Hill County.
They described how he tried to smash a window to help them escape the rising water, but it cut his arm and he bled out before help could arrive.
Questions have been raised over extreme weather warnings in Texas, after heavy rain caused fatal flash floods along the Guadalupe River.
At least 51 people have died from the flooding in Texas, with an unknown number of people – including 27 girls from Camp Mystic in Kerr County – still missing.
As rescue teams continue to search for the missing, local and federal officials have come under fire over their flood preparations and about why those along the river weren’t warned of the risks sooner.
Image: A map showing the Guadalupe River in Kerr County, which burst from heavy rain and caused flash flooding
Image: Campers embrace at a reunification area. Pic: Jason Fochtman/Houston Chronicle via AP
What happened?
As much as 10ins (25cm) of heavy rain fell in just a few hours overnight in central Kerr County on Friday, causing the banks of the Guadalupe River to burst at around 4am local time.
Homes and vehicles were swept away by the downpour – equivalent to months’ worth of rain – while 27 girls staying at Camp Mystic, a Christian summer camp along the river, went missing when the fast-rising floodwaters hit.
The death toll stands at: • At least 43 people, including 15 children and 28 adults, in Kerr County, • One person in Kendall County, • At least four people in Travis County, • At least two in Burnet County, • And one person in the city of San Angelo.
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1:20
House sweeps away in flash floods
What flood warnings were there?
Private forecasting company AccuWeather said it and the National Weather Service (NWS) sent warnings about potential flash flooding hours before it began, urging people to move to higher ground and evacuate flood-prone areas.
The NWS also issued flash flood emergencies – a rare alert notifying of imminent danger – at 4.23am local time.
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In a statement, AccuWeather said that “these warnings should have provided officials with ample time to evacuate camps such as Camp Mystic and get people to safety”.
It also called Texas Hill County one of the most flash-flood-prone areas of the US because of its terrain and many water crossings.
However, chief of the Texas Division of Emergency Management Nim Kidd said that one NWS forecast earlier in the week had called for up to six inches of rain.
“It did not predict the amount of rain that we saw,” he said.
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3:35
Texas searches for missing children
Were they enough?
Locals have told various news agencies that while there had been phone alerts late into the night, forecasts headed into Friday evening did not predict the extreme conditions.
Christopher Flowers, who was staying at a friend’s house along the river when the flooding started, told the Reuters news agency: “What they need is some kind of external system, like a tornado warning that tells people to get out now.”
Kerrville resident Darryl Huffman told Sky’s US partner network NBC News that he did not believe the storm would pose such danger before its arrival.
“I looked out the window and it was barely sprinkling outside,” he said, “so I had no indication that the river was going to be right outside my driveway”.
Image: People climb over debris on a bridge atop the Guadalupe River in Ingram, Texas. Pic: AP
Image: A Sheriff’s deputy pauses while searching for the missing in Hunt, Texas. Pic: AP/Julio Cortez
Jonathan Porter, chief meteorologist at AccuWeather, said it appeared evacuations and other proactive measures could have been undertaken to reduce the risk of fatalities.
He said in a statement: “People, businesses, and governments should take action based on Flash Flood Warnings that are issued, regardless of the rainfall amounts that have occurred or are forecast.”
Separately, the NWS’s union told NBC News the agency’s offices in central Texas were well-staffed and had issued timely warnings, “giving preliminary lead times of more than three hours before warning criteria were met”.
What have officials said?
Local and federal officials have said they had not expected such an intense downpour of rain and insisted that no one saw the flood potential coming.
Kerr County Judge Rob Kelly, the county’s top elected official, said: “We know we get rain. We know the river rises. But nobody saw this coming.”
“We have floods all the time. This is the most dangerous river valley in the United States,” he said, adding: “We had no reason to believe this was going to be anything like what’s happened here. None whatsoever.”
Mr Kelly separately noted that while the county considered a flood warning system along the river that would have functioned like a tornado warning siren about six or seven years ago, “the public reeled at the cost”.
At a news conference with the Texas governor, Homeland Security secretary Kristi Noem said on Saturday that “everybody knows that the weather is extremely difficult to predict” before saying “we have all wanted more time and more warning and more alerts and more notification” from the NWS.
She said a “moderate” flood watch issued on Thursday by the NWS had not accurately predicted the extreme rainfall and said the Trump administration was working to upgrade their technology.
Image: Kristi Noem and Texas governor Greg Abbott give a news briefing. Pic: AP
Will forecasting get better?
While Ms Noem said technology for the NWS would be upgraded, the White House has previously been criticised after Donald Trump‘s administration ordered 800 job cuts at the National Oceanic and Atmospheric Administration (NOAA) – the parent organisation of the NWS.
A 30% cut to its budget is also in the pipeline, subject to approval by Congress.
Professor Costa Samaras, who worked on energy policy at the White House under President Joe Biden, said NOAA had been in the middle of developing new flood maps for neighbourhoods and that cuts to NOAA were “devastating”.