By GB News (World News) | Created at 2025-04-04 08:11:22 | Updated at 2025-04-05 10:15:32
1 day ago
British construction equipment manufacturer JCB has announced plans to double the size of its new factory in Texas in response to Donald Trump's tariffs on UK imports.
Although currently under construction, the company confirmed it will expand the facility from 500,000 to one million square feet.
JCB's headquarters in Staffordshire
PA
JCB's new mega-factory will employ 1,500 people
PA
Lord Bamford's announcement marks JCB as the first major British manufacturer to bolster its US operations in direct response to the new tariffs.
The company remains headquartered in Staffordshire, with 11 plants in the UK employing 8,000 people.
JCB chief executive Graeme Macdonald added: "In the short term, the imposition of tariffs will have a significant impact on our business."
"However, in the medium term, our planned factory in San Antonio will help to mitigate the impact.
"We are thankful that the tariff is only 10 per cent and we can only hope that the UK Government will conclude negotiations on a trade deal in the coming days and weeks."
JCB has 11 plants in the UK and employs 8,000 people
PA
Trump's tariffs, which came into effect yesterday, are designed to protect domestic manufacturing and boost American jobs.
British manufacturers have urged Sir Keir Starmer to move quickly to strike a deal with the US on free trade to lessen the impact of the new levies.
The president has already handed the UK lower tariffs than much of the rest of the world, something that has been hailed as a "Brexit dividend".
Senior executives from several industries were invited to a meeting at Downing Street yesterday morning to be briefed on the Government's next steps.
The Prime Minister has said he will continue to engage with businesses and seek an economic deal with the US to reduce the impact of the tariffs.
The news US factory is due to start production next year
PA
Mike Hawes, the chief executive of the Society of Motor Manufacturers and Traders, said: "If you could negotiate some sort of economic agreement that gives us a competitive advantage compared to other manufacturing locations, that could be a real benefit."
Kevin Craven, chief executive of ADS, the trade group for aerospace, defence and space sectors, was optimistic about Britain's position.
"We are better off than Europe today and our Government and officials are reasonably positive about improving the better position that we have," he said.
Other manufacturers are already feeling the impact of the tariffs, with Stellantis temporarily halting work at factories in Canada and Mexico.
A Downing Street spokesman said JCB's expansion was a commercial decision but added: "Our approach to business is to engage, to listen and to act in a pragmatic way."
"Although we recognise that the UK is in a relatively more favourable position than other countries, the impact on the UK will be real."
The spokesman added the government was focused on "working with businesses to analyse the impacts of this decision and to continue to work with the US to lower trade barriers".
