JCB is the first big British firm planning to boost production in the US in response to Trump's tariffs

JCB has become the first major British manufacturer to say it will bolster its US operations in response to Donald Trump’s tariffs.

The chairman of the British company, Lord Bamford, mentioned that in response to the global tariffs announced by the President, they plan to expand their new factory in Texas and increase production in the US.

The announcement will worry Labour as it tries to keep the UK economy growing amid fears that there will be job losses as a result.

President Trump announced protectionist tariffs on all US imports as part of his plans to ‘Make America Wealthy Again’.

Tariffs are ultimately designed to protect domestic manufacturing, boost jobs and convince consumers to buy local products.

The President’s objective with these tariffs is to boost employment opportunities in the US by attracting more manufacturing jobs and to urge other nations to invest in American products significantly.

JCB’s decision to enlarge their factory from 500,000 to 1 million square feet, along with the creation of 1,500 job positions, is likely to raise concerns for the Labour party.

Lord Bamford said: ‘JCB has been in business for 80 years this year and we are well accustomed to change.

Lord Bamford (pictured), 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 the President announced punitive global tariffs

Lord Bamford (pictured), 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 the President announced punitive global tariffs

Donal Trump pictured reading many of the tariffs off the chart during the press conference on April 2

Donal Trump pictured reading many of the tariffs off the chart during the press conference on April 2

A worker pictured attending to machinery inside the JCB factory in Rochester, Staffordshire

A worker pictured attending to machinery inside the JCB factory in Rochester, Staffordshire

‘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 USA, which has been an important market for JCB since we sold our first machine there in 1964.’

JCB began in 1945 as one man in a garage in Uttoxeter in Staffordshire building agricultural tipping trailers.

It has since expanded to become a great British success story and now has 22 plants on four continents, more than 750 dealers around the world and a workforce of more than 15,000. 

The company is still based in Staffordshire, has 11 plants in the UK and employs 8,000 people.

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.’

British manufacturers urged Sir Keir Starmer to strike an economic deal with the US to reduce the new tariffs, which are set at 10per cent.

UK car makers are also reviewing whether to cut production after the industry was hit with 25 per cent tariffs on exports to the US.

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

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 

Inside the JCB factory in Rocester, Staffordshire, where the British company produces its heavy machinery that is used across the globe

Inside the JCB factory in Rocester, Staffordshire, where the British company produces its heavy machinery that is used across the globe

If they scale back output across Britain to cope with higher costs or reduce the number of models that are delivered to the US it could have an impact on workers. 

About 17 per cent of all cars made for export in Britain are shipped to America.

Some brands in the luxury market, including Jaguar Land Rover and Aston Martin, will be more exposed than others.

Senior executives from several industries were invited to a meeting at Downing Street to be briefed on the Government’s next steps yesterday morning.

Sir Keir 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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