LONDON: Chinese-owned luxury carmaker Lotus is set to slash up to 550 jobs in the UK—more than 40% of its local workforce—amid ongoing uncertainty from US trade tariffs and shifting global auto policies.

The company, majority-owned by Chinese auto giant Geely, said the restructuring was aimed at ensuring a “sustainable future” as the industry confronts rapid regulatory and geopolitical changes. Lotus employs around 1,300 staff in Britain, with operations centred at its Hethel headquarters in eastern England. It also runs a manufacturing plant in Wuhan, China.

Automakers have been among the hardest hit by US President Donald Trump’s tariff measures, which sought to push more vehicle production back to American soil. Under a May trade deal, tariffs on UK car exports to the US were reduced from 27.5% to 10%—but only for the first 100,000 vehicles annually. The rate remains significantly higher than before Washington’s tariff hikes in April.

Industry data released Thursday showed UK auto exports to the US rebounded in July after months of decline, following the new trade agreement’s implementation on June 30.

The job cuts underscore the pressure facing Lotus and the wider UK car industry, already grappling with global supply chain volatility and escalating trade tensions.