JCB reacts to Trump’s tariffs by doubling size of new USA factory

JCB said that the newly announced tariffs will impact its business only in the short-term. 

The company has been manufacturing in the USA for 50 years and last year bought 400 acres of land in San Antonio after recognising the need to produce even more machines in North America. 

The original plan for a 500,000-square-foot factory in San Antonio has now been revised, and JCB is forging ahead with plans to double its size to one million square feet. The new $500 million plant is due to start production next year and employ up to 1,500 people and will build on JCB’s growth in North America. 

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

“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.” 

‘Significant impact’ of tariffs

JCB CEO Graeme Macdonald explained that in the short term, the imposition of tariffs will have a significant impact on the business.  

“However, in the medium term, our planned factory in San Antonio will help to mitigate the impact. We are thankful that the tariff is only 10%, and we can only hope that the UK government will conclude negotiations on a trade deal in the coming days and weeks,” he concluded.

Farming groups have reacted to the news that the US will impose at least a 10% import tariff from 5th April.  
 
Several countries will be subject to country-specific tariffs that will take effect on 9th April 2025, including the UK.  

This includes a 20% tariff for the EU and 54% for China (including previous tariffs announced). The 25% on Canada and Mexico that were announced last month will be unchanged.  

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