US tariffs slash UK car exports in May: data – ET Auto

• AFP

• Published On Jun 27, 2025 at 11:42 AM IST

Almost 80 percent of cars made in the UK last year were exported, mostly to the European Union.

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British car exports to the United States slumped by over half in May in large part due to President Donald Trump’s tariffs, data showed Friday, but are set to recover thanks to a US-UK trade deal.

Britain’s automotive trade body SMMT said that exports of new vehicles fell more than 55 percent last month compared with May 2024.

Trump’s tariffs on the auto sector, imposed in April, “depressed demand instantly, forcing many manufacturers to stop shipments”, it said.

“However, with the trade agreement… due to come into effect before the end of June, this should hopefully be a short-lived constraint.”

The agreement between London and Washington will slash the tariff on UK car exports to 10 percent from 27.5 percent, on a limit of 100,000 vehicles annually.Almost 80 percent of cars made in the UK last year were exported, mostly to the European Union.

The UK auto sector is dominated by foreign-owned brands, including Japanese giant Nissan and India-owned Jaguar Land Rover.

The United States meanwhile is a key market for UK-produced luxury models such as Bentley and Rolls-Royce, which are both under German ownership.