UK automotive leaders are calling for immediate trade negotiations following the US government’s decision to impose a 25% tariff on imported vehicles, set to take effect next Wednesday. The move threatens a sector already facing declining sales and rising production costs.
The US is the UK’s second-largest car export market, valued at £7.6 billion. In 2023, over 101,000 UK-built vehicles—mainly premium and luxury models—were shipped to the US, accounting for nearly 17% of total car exports. The tariffs will hit major UK manufacturers, including Jaguar Land Rover, BMW, Toyota, Nissan, and Stellantis.
Jaguar Land Rover, which employs 11,000 people in the UK, relies on the US as its biggest overseas market. BMW’s three UK plants, which focus on Mini production and employ around 8,000 people, could also face significant cost increases. The US remains a key Mini market despite declining sales due to model changes.
The Society of Motor Manufacturers and Traders (SMMT) is pushing for a trade deal to avoid disruption, emphasising the long-standing UK-US automotive relationship. The British Chambers of Commerce has also called for “intensive dialogue” to mitigate the economic impact.
Chancellor Rachel Reeves confirmed that discussions with the US are ongoing, while business leaders warn that the tariffs could increase costs for American consumers and create further supply chain instability.
