How Trump’s Tariffs will impact the North East

The North East Combined Authority have said that the North East will be less impacted than other areas of the North East.

Transcript

00:00Councillors in the North East have been told that the region is for now relatively shielded

00:04from the economic turmoil sparked by Donald Trump's sweep and trade tariffs on exports

00:08to the United States.

00:09The global economy has been left reeling by US President's protectionist policies.

00:14Though Mr Trump has since softened some aspects of his stance, the UK remains subject to

00:18a 10% tariff on all exports to the US, with higher charges of 25% imposed on key sectors,

00:24including cars, steel and aluminium.

00:26Despite these growing concerns, officials at the North East Combined Authority say that

00:30the region's economy is currently less exposed than other areas in the UK, especially compared

00:35to regions like the West Midlands, where carmaker Jaguar relies heavily on transatlantic trade.

00:41Rob Hamlet, in Strategic Lead for Economic Growth and Regeneration for the North East Combined

00:46Authority, told other members that while road vehicles and parts account for 30% of all

00:51North East exports, only around 6% of the region's total exports are sent to the US.

00:57We are less exposed than other parts of the UK, he said.

01:00He added that many local firms currently feel relatively assured, though he warned that uncertainty

01:05remains high, especially with the potential for further tariffs, including pharmaceutical

01:09products, which are among the North East's top exports to America.

01:13Colin Ferguson, leader of Newcastle's Liberal Democrats and chair of the NECA's scrutiny panel,

01:18said,

01:18I am conscious that the position we are in at the moment is that we have absolutely no idea

01:22where America is going on this. Anyone who says they know the next move is probably bluffing.

01:28Analysis from Think Tank Centre for City supports the idea that the North East is in a stronger

01:32position than other parts of the UK. New data published last week shows that cities like

01:37Coventry, Derby and Telfad are far more vulnerable to the US tariffs, with up to 22% of their exports

01:43heading across the Atlantic.