JCB warns US tariff changes will cost ‘hundreds of millions’

The privately owned firm has called on the UK government to intervene after a surprise move by the Trump administration on Monday 18 August to expand the scope of its 25% tariffs on steel and aluminium components exported from Britain to the US to include all finished goods.

JCB’s chief executive Graeme MacDonald told The Times that the new tariffs were “punitive”.

The company has previously committed to expand its manufacturing in the US, announcing in April this year that it would double the size of a new factory currently under construction in San Antonio, Texas, to 1 million square feet.

Anthony Bamford, front right, receives his 60-year long service award from JCB CEO Graeme Macdonald at a presentation attended by JCB directors.

Macdonald confirmed that all 30,000 of the construction machines it exports annually to the US each year would be hit by the expanded Section 232 tariffs.

That includes a $45 million contract awarded last week to supply the US Marine Corps with backhoe loaders.

“The tariffs as they now stand are hugely punitive and they catch every machine that we ship to the US,” Macdonald said. “It will make us have to reconsider how we trade with North America.”

JCB is calling on the UK government to negotiate an exemption for JCB similar to the one won by Rolls-Royce for the export of its jet engines to the US, according to the report. It also wants to see negotiatins on the new tariffs.

A spokesperson for the UK government said, “Thanks to our trade deal with the US, the UK is still the only country to have avoided 50% steel and aluminium tariffs. But we are committed to going further to give industry the security they need, protect vital jobs, and put more money in people’s pockets. We will continue to work with the US to get this deal implemented as soon as possible and in industry’s best interests.”