British agri-machinery giant JCB has revealed plans to double the size of its new Texas factory in response to tariffs on UK imports imposed by President Trump.
Although still under construction, the company confirmed it would expand the San Antonio facility from 500,000 to one million square feet.
This decision follows the US President's 10 percent tariff on British goods, which JCB warned would have a significant short-term impact on its business.
However, it said that in the medium term, the planned factory in San Antonio would help to mitigate the impact.
JCB has been manufacturing in the US for 50 years, and last year bought 400 acres of land in San Antonio after recognising the need to produce more machines in North America.
The company has an existing manufacturing plant in Savannah, Georgia, which it has operated for 25 years, employing around 1,000 people.
In response to the tariffs, JCB Chairman Lord Anthony Bamford said: “JCB has been in business for 80 years this year and we are well accustomed to change.
"President Trump has galvanised us into evaluating how we can make even more products in the US, which has been an important market for JCB since we sold our first machine there in 1964.”
Lord Bamford's announcement makes JCB the first major British manufacturer to expand its US operations in direct response to the new tariffs.
Despite this move, the company remains based in Staffordshire, with 11 plants in the UK and a workforce of 8,000.
JCB CEO 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.”
It comes as the NFU admitted that the 10% tariff on UK exports to the US would be a significant challenge for British farming.
The United States is the largest market for British agri-food products outside of the European Union.
In 2024, the UK exported over 430,000 tonnes of food, beverages, and live animals to the US, valued at nearly £2.6 billion.
