Trump’s tariffs squeeze an already struggling UK car industry

The 25% tariffs imposed by President Donald Trump on imported cars have added to the pressures on vehicle manufacturers around the world, but the pain could be particularly acute in Britain’s venerable but flagging auto industry.

- STANLEY REED

Britain exports more than 70% of the cars that it makes. In 2024, it sent about 101,000 of those vehicles — about 17% of car exports, worth £7.6 billion (about $10.1 billion) — to the United States, according to the Society of Motor Manufacturers and Traders, an industry group. Tariffs now threaten to close what had been one of Britain’s largest markets.

Over the decades, Britain has built a reputation for producing innovative and iconic vehicles such as the Land Rover Defender and the Morris Minor, which helped make car ownership affordable as the country emerged from World War II.

In recent years, though, the auto industry has struggled to keep pace as it navigates obstacles including the global shift to electric vehicles and Britain's exit from its main export market, the European Union.

The annual number of cars made in Britain has fallen nearly 50% since the end of the last decade to about 770,000. It now imports far more cars than it makes.

Given the Trump administration's rapid policy swings, it is impossible for auto industry executives to know what level of tariffs will stick. But Washington’s moves are already bad news for some of Britain’s carmakers, which view the United States as a crucial growth market.

“This is about a very unsettling move for UK manufacturing,” said Peter Wells, a car expert at Cardiff University in Wales.