LONDON: Britain’s vehicle production declined from a year ago for the fifth successive month in May, industry data showed on Friday, as factory disruptions and US tariffs weighed on automakers.
UK car and commercial vehicle production dropped 32.8 percent from a year ago to 49,810 units last month, marking the worst percentage drop in May output since 1949, excluding the COVID-19 pandemic-hit 2020, according to data from the Society of Motor Manufacturers and Traders.
Exports to the UK’s two biggest markets, the EU and the US, declined by 22.5 percent and 55.4 percent respectively, SMMT said.
US President Donald Trump’s 25 percent tariffs on imported automobiles and parts, imposed in March, have disrupted global supply chains, added hundreds of millions of dollars in costs for manufacturers, prompted export suspensions and pushed several automakers, especially in Europe, to consider shifting production to the US to avoid the duties.
British manufacturing also contracted in May, as output, orders and employment declined.
Still, SMMT chief Mike Hawes said the UK’s trade deals, especially with the US, and a more positive relationship with the EU, provided some optimism.
The US and UK reaffirmed a previously agreed trade deal during the G7 summit in Canada earlier this month, under which up to 100,000 UK-made cars a year can enter the US at a 10 percent tariff, lower than the 25 percent rates other countries face.
In May, Britain reached a trade deal with India to lower tariffs and set quotas on auto imports, while also moving closer to the European Union on cooperation in defense, energy and agriculture.
Car production, excluding commercial vehicles, dropped by 31.5 percent in May, largely driven by model changeovers, restructuring and the impact of US tariffs, SMMT said.
UK made fewer vehicles for the fifth straight month in May as Trump tariffs bite
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UK made fewer vehicles for the fifth straight month in May as Trump tariffs bite
- UK production dropped 32.8 percent from a year ago, marking the worst percentage drop in May output since 1949
- US President Trump’s 25 percent tariffs on imported automobiles and parts have disrupted global supply chains
India to provide $450 million to cyclone-ravaged Sri Lanka
COLOMBO: India has committed $450 million in humanitarian assistance to help Sri Lanka recover from the devastating damage caused by Cyclone Ditwah, foreign minister Subrahmanyam Jaishankar said Tuesday on a visit to the country.
The cyclone killed more than 640 people when it swept across the South Asian island last month, causing floods and landslides that inflicted about $4 billion in damage, according to the World Bank, or 4 percent of the country’s GDP.
Sri Lankan President Anura Kumara Dissanayake has described the storm, which affected more than two million people, as the most challenging natural disaster in the island’s history.
Jaishankar, who is on a two-day visit, told a media briefing in Colombo he had handed a letter from Prime Minister Narendra Modi to Dissanayake, committing to a “reconstruction package of $450 million.”
While $350 million will take the form of “concessional lines of credit,” the remaining $100 million will be given as grants.
Jaishankar also noted the 1,100 tons of relief material, along with medicine and other necessary equipment, sent to India’s southern neighbor in the cyclone’s immediate aftermath.
“Given the scale of damage, restoring connectivity was clearly an immediate priority,” he said, detailing the Indian military’s assistance in providing portable bridges.
Jaishankar said India would also look at other ways to mitigate the losses, including encouraging Indian tourism to Sri Lanka.
“Similarly, an increase in foreign direct investment from India can boost your economy at a critical time,” he added.
The cyclone struck as Sri Lanka was emerging from its worst-ever economic meltdown in 2022, when it ran out of foreign exchange reserves to pay for essential imports such as food, fuel and medicines.
Following a $2.9 billion bailout from the International Monetary Fund approved in early 2023, the country’s economy has stabilized.
str-abh/cwl
