JCB, a manufacturer of construction and agricultural equipment, has announced that it will expand its US operations as a response to President Trump’s tariffs. It is still unclear what impact the tariffs will have on JCB’s UK workforce of 8,000.
Lord Bamford said the British company would double its new factory size in Texas, and “make more products in the US”, after Trump announced the global tariffs.
The company said that the introduction of trade tariffs would have a “significant impact” on its UK business. It will double the size and scope of the existing plans for a new factory to be built in San Antonio, Texas.
JCB is the third largest construction equipment manufacturer in the world by volume. It has 22 factories around the globe and produces over 300 products. More than 19,000 employees are employed worldwide. 8,000 of them work in the UK.
Graeme Macdonald, JCB’s chief executive, said that the planned factory for San Antonio will help mitigate the impact of tariffs in the medium-term.
He said: “We’re thankful that the tariffs are only 10%, and we can hope that the UK Government will complete negotiations on a deal for trade in the next days and weeks.”
JCB has a manufacturing plant in Savannah (Georgia) that employs about 1,000 people. Last year, the company purchased 400 acres in San Antonio. In June of last year, the company began construction on a new factory with a floor area of 500,000 square feet. The factory will now be expanded up to one million sq. ft.
Lord Bamford stated: “JCB is celebrating 80 years in business this year. We are used to change.”
“The United States has always been a major market for JCB, and President Trump’s visit has inspired us to look at ways we can produce even more machines in the US. This market has been important for JCB ever since we sold our very first machine in 1964.”
A Downing Street spokesman was asked about JCB’s plans. He said that it was a business decision, but added: “Our approach is to engage with businesses, to listen, and to act pragmatically. Although we recognize that the UK is relatively in a more favourable situation than other countries, this decision will have a real impact on the UK. Our focus is to work with businesses to analyze the impacts of the decision, and continue to work with US to lower the trade barriers.”
UK automakers are reportedly considering whether or not to reduce production following the 25% tariffs imposed on their exports to the US. Around 17% of the cars exported from the UK go to the US. Brands in the luxury segment, such as Jaguar Land Rover and Aston Martin are particularly vulnerable.
Yesterday morning, senior executives from a variety of industries were invited to Downing Street for a briefing on the next steps by the government.
Keir starmer, the Prime Minister of Australia has stated that he will engage with business and seek an economic agreement with the US in order to reduce the impact of levies.
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