A new tariff on foreign cars entering the US could cost the UK automotive industry a fortune, as Sir Kier Starmer is urged to do one thing.
The UK car industry could lose up to £8 billion per year following President Trump’s auto tariff (Image: Getty)
A motoring expert has warned that the UK car industry could lose out on billions of pounds every year due to new tariffs
It was one of Mr Trump’s key pledges throughout the build-up to the American Presential Election in 2024, and now the US Government recently confirmed plans to introduce a 25 % tariff on imported models.
Tom Jervis, Consumer Reporter for the motoring publication Auto Express, stated that, despite being predicted, the introduction of the tariff could harm demand for UK-made cars in America.
He explained: “The writing has been on the wall for a while now when it comes to President Trump imposing some kind of tariff on automotive imports into the US, but don’t let that downplay how much of a blow this has the potential to be for the UK car industry.
“Last year, more than £8 billion worth of cars were imported to the States from the UK, which accounts for around 14% of all of our exports to the USA.”
America buys 14 percent of all new cars, with luxury models from JLR and Bentley popular (Image: Getty)
According to data from the Society of Motor Manufacturers and Traders (SMMT), around 110,000 cars produced in the UK were exported to America in 2024 – accounting for 14% of the country’s total.
However, the tariff imposed by President Trump will make these models more expensive for American motorists to buy, encouraging many to buy cheaper alternatives that are made in the USA.
The move comes at an already competitive time for the UK automotive industry, thanks in part to the increasing number of imported models coming from China and issues surrounding the Government’s ZEV (Zero-Emission Vehicle) Mandate.
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Tom noted that stronger bonds with America could see the tariffs lifted; however, additional support to the car industry is even more vital.
He added: “These tariffs from Trump could, in a very worse-case scenario, see UK factories close in favour of new facilities being opened up in the US, resulting in the loss of hundreds or even thousands of jobs. In turn, this will also impact the UK economy, meaning that everyone will be worse off as a result.
“Keir Starmer now has the unenviable task of cosying up to Trump to avoid some form of trade war. All we ask is that the Government supports the UK automotive industry, as it’s the backbone for the nation’s manufacturing sector in an age where we have effectively become a service-based economy.”
