This is clearly bad news, & significantly raises the risk of tariffs for auto. Cumulation is not unprecedented, but will not be offered for free. https://twitter.com/BBCPolitics/status/1311239569334054918

Most disappointing is that govt. comments suggest that it has given up on securing its asks on cumulation, which, while ambitious, showed that it understood what the industry needs.

I'm not in the room, but have always had full confidence in the UK team negotiating the RoO provisions, & know that they will have done their utmost to secure cumulation. But...

...there is a political decision to be made here. Shifting the CION position on cumulation requires concessions (potentially big ones) from the UK. So the question is; is #automotive important enough in the eyes of govt. to do this?

I certainly believe so. The cost of tariffs on automotive are enormous (10% on finished vehicles, 22% on vans & trucks, 2-4% on tariffs) & will wipe out the small margins of many manufacturers.

These manufacturers, and the industry as a whole, are a critical economic driver in the UK. They are at the heart of communities right across the country, employing 823,000 million, with 168,000 employed in well paid, high skill, manufacturing jobs.

The sector is also a driver of int. trade, exporting to over 150 countries & generating over £100bn in total trade, highly productive, & a key investor in new tech. Given all this, automotive shld be a priority, & govt. shld try again to make sure it isn't hit with tariffs.

Correction - The tweet earlier in this thread, should have said 823,000, not 823,000 million, obviously. https://twitter.com/NashSGC/status/1311259247586480128?s=20