Lotus Weighs Moving UK Production to the US Amid Tariff Pressure

British sports car manufacturer Lotus is considering relocating its production from the UK to the United States, a move that could endanger approximately 1,300 jobs at its longstanding headquarters in Hethel, Norfolk, the BBC has learned.

While the company has declined to publicly confirm the reports – first revealed by the Financial Times — sources within Lotus say the shift is under serious review, largely due to trade disruptions sparked by US import tariffs on vehicles and components.

Production at the Norfolk facility was recently suspended temporarily, as the firm grapples with the financial strain of a 25% tariff imposed on cars imported into the US – a key market for the company.

Though a new trade agreement between the UK and the US is expected to reduce the tariff to 10% by the end of June, the current rate has already had a significant impact. According to recent data, British car exports to the US have halved as manufacturers weigh the cost of doing business in light of President Donald Trump’s aggressive tariff policies.

Lotus, which is majority-owned by Chinese auto giant Geely, currently produces vehicles in Norfolk and Wuhan, China. The parent company is also in the process of restructuring its portfolio, which includes other car brands like Volvo, Polestar, and Lynk & Co.

The carmaker previously announced plans in April to cut 270 jobs, citing “volatile and evolving market conditions” — particularly in the US. That followed an earlier round of layoffs in 2023. Despite these reductions, Lotus had reiterated its commitment to the UK, describing the job cuts as part of a broader strategy to stay competitive globally.

Founded in the 1950s by engineer Colin Chapman, Lotus has been based in Norfolk since the 1960s and is known for its lightweight sports cars and Formula 1 heritage.

If the company proceeds with a shift to the US, it would mark a major turning point for the iconic British marque – and yet another consequence of global trade tensions disrupting long-standing industrial ties.