UK-based construction machinery maker JCB will increase the size of a new factory being built in Texas to soften the impact of Donald Trump’s tariffs.
The company said today that the extra 10% tariffs levied on UK imports would significantly affect its business in the short-term.
Its existing plant in Savannah, Georgia has been running for 25 years and employs around 1,000 people.
But in response to growing demand in North America, last year JCB bought 400 acres in San Antonio and had started building a $500m, 720,000-sq-ft factory.
Now, the factory will be a million square feet, the company said yesterday without updating the project’s cost.
JCB said it would employ up to 1,500 people when it starts production next year.
“JCB has been in business for 80 years this year and we are well accustomed to change,” said JCB Chairman Anthony Bamford.
“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.”
JCB chief executive Graeme Macdonald said: “In the short term, the imposition of tariffs will have a significant impact on our 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.
- Updated 4 April 2025 to clarify the project’s cost estimate
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