What Do Trump’s Car Tariffs Mean for the UK Economy?
By Tom Saunders, Business Reporter
President Trump’s decision to impose increased tariffs on car imports, aiming to bolster the US industrial base and offset tax cuts, is poised to create significant ripples across the global automotive industry. The UK, home to several luxury carmakers, is likely to feel the economic repercussions of these new tariffs.
On March 26, 2025, Trump announced a 25% tariff on car imports, scheduled to take effect on April 3. Initially, this would apply to fully assembled vehicles, with plans to expand the scope in the following month. The expansion will include vital car parts, such as engines, transmissions, powertrain components, and electrical systems. A statement from the White House also suggested the potential for further expansion.
Trump has described the tariffs as “permanent” and has no intention of offering any carve-outs.
Luxury carmakers are particularly vulnerable, as relocating to the US is not a viable option for many, due to their brand identity being linked to their UK manufacturing base.
