Donald Trump's controversial 25 percent tariffs on foreign car imports took effect today, marking a significant blow to the UK's automotive sector.
The US President also imposed a 10 per cent blanket tariff on all UK exports to America, although this is lower than the 20 per cent levied against the European Union.
The tariffs on car imports were announced yesterday during what Trump called "Liberation Day" at a White House ceremony.
"April 2 2025, will forever be remembered as the day American industry was reborn," Trump declared during his announcement, claiming the measures would help "make America wealthy again."
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But British manufacturers now face an uphill battle to maintain competitiveness in the crucial US market with the impact on the UK car industry expected to be severe. Experts have already estimated that over 25,000 direct jobs are potentially at risk, according to a new report from the Institute for Public Policy Research.
UK employees at Jaguar Land Rover and the Cowley Mini factory have been considered among the most exposed to these punitive measures, as well as workers at the Rolls Royce factory in Goodwood.
It comes as the US represents the second-largest export market for British-made cars after the European Union, with more than 101,000 units shipped in 2024, accounting for 16.9 per cent of all UK car exports.
Tom Jervis of Auto Express called the tariffs "a serious setback for the UK automotive sector, an industry which is already under immense pressure">
Meanwhile, Stellantis, the owner of UK car brand Vauxhall, told GB News: "Stellantis continues to assess the effects of the recently announced US tariffs on imported vehicles and will continue to engage with the US Administration on these policy changes."
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, warned that the tariffs are "deeply disappointing and potentially damaging" despite being lower than those imposed on other major economies.
"These tariff costs cannot be absorbed by manufacturers, thus hitting US consumers who may face additional costs and a reduced choice of iconic British brands, while UK producers may have to review output in the face of constrained demand," he said.
Sue Robinson, chief executive of the National Franchised Dealers Association, added that the "cumulative effects of these tariffs will be profound" on dealers who have already shown "remarkable resilience" in challenging economic times.
She urged the Government to "take swift and decisive action to safeguard jobs and protect our industry during these unprecedented times."
But Prime Minister Sir Keir Starmer has insisted that "nothing is off the table" when it comes to the nation’s response to the tariffs. "Today marks a new stage in our preparation," he said. "We have a range of levers at our disposal, and we will continue our work with businesses across the country."
Aidan Rushby, founder and CEO of Carmoola, shared: "Trump’s new tariffs might seem like a distant diplomatic issue, but UK car buyers could feel the knock-on effects sooner than expected.
"If British manufacturers struggle to sell into the US, we could see more cars redirected to the domestic market, which may mean better deals for UK consumers, especially when it comes to nearly-new and used cars."
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Rushby added: "In today’s volatile market, it’s more important than ever to stay informed and make savvy decisions - and that includes dealing with responsible lenders who will help you access finance that you can afford."
Find Out More...
The US President also imposed a 10 per cent blanket tariff on all UK exports to America, although this is lower than the 20 per cent levied against the European Union.
The tariffs on car imports were announced yesterday during what Trump called "Liberation Day" at a White House ceremony.
"April 2 2025, will forever be remembered as the day American industry was reborn," Trump declared during his announcement, claiming the measures would help "make America wealthy again."
Do you have a story you'd like to share? Get in touch by emailing [email protected]
But British manufacturers now face an uphill battle to maintain competitiveness in the crucial US market with the impact on the UK car industry expected to be severe. Experts have already estimated that over 25,000 direct jobs are potentially at risk, according to a new report from the Institute for Public Policy Research.
UK employees at Jaguar Land Rover and the Cowley Mini factory have been considered among the most exposed to these punitive measures, as well as workers at the Rolls Royce factory in Goodwood.
It comes as the US represents the second-largest export market for British-made cars after the European Union, with more than 101,000 units shipped in 2024, accounting for 16.9 per cent of all UK car exports.
Tom Jervis of Auto Express called the tariffs "a serious setback for the UK automotive sector, an industry which is already under immense pressure">
Meanwhile, Stellantis, the owner of UK car brand Vauxhall, told GB News: "Stellantis continues to assess the effects of the recently announced US tariffs on imported vehicles and will continue to engage with the US Administration on these policy changes."
Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders, warned that the tariffs are "deeply disappointing and potentially damaging" despite being lower than those imposed on other major economies.
"These tariff costs cannot be absorbed by manufacturers, thus hitting US consumers who may face additional costs and a reduced choice of iconic British brands, while UK producers may have to review output in the face of constrained demand," he said.
Sue Robinson, chief executive of the National Franchised Dealers Association, added that the "cumulative effects of these tariffs will be profound" on dealers who have already shown "remarkable resilience" in challenging economic times.
She urged the Government to "take swift and decisive action to safeguard jobs and protect our industry during these unprecedented times."
But Prime Minister Sir Keir Starmer has insisted that "nothing is off the table" when it comes to the nation’s response to the tariffs. "Today marks a new stage in our preparation," he said. "We have a range of levers at our disposal, and we will continue our work with businesses across the country."
Aidan Rushby, founder and CEO of Carmoola, shared: "Trump’s new tariffs might seem like a distant diplomatic issue, but UK car buyers could feel the knock-on effects sooner than expected.
"If British manufacturers struggle to sell into the US, we could see more cars redirected to the domestic market, which may mean better deals for UK consumers, especially when it comes to nearly-new and used cars."
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Rushby added: "In today’s volatile market, it’s more important than ever to stay informed and make savvy decisions - and that includes dealing with responsible lenders who will help you access finance that you can afford."
Find Out More...