Donald Trump’s new 25% car import tariffs could be “bad news for manufacturers” and consumers based in the UK, according to motoring specialists. Analysis from Auto Trader suggested manufacturers were “likely to put prices up” to counter the effects of extra fees from the United States.
They stressed tariffs “won’t help” and suggested a different approach was needed for the UK to enjoy a “thriving car market”. The President introduced the tariffs on Wednesday afternoon in a bid to boost the production of new cars in the United States. Any models not built in the U.S. will be hit with extra charges if vehicles are sold in the country, with fees likely to be somehow passed onto consumers.
Ian Plummer, Commercial Director at Auto Trader warned manufacturers needed to “compete and prosper” on a global stage.
Speaking to the Daily Express, Ian said: “Tariffs are bad news for manufacturers and are highly likely to put up prices for consumers.
“The UK needs a thriving car market and tariffs won’t help. Alternative solutions should be considered to ensure manufacturers can compete and prosper on the global stage, as they already have tough mandates to follow in many global markets.”
Manufacturers without a presence in the United States could be most affected by the news.
It is possible that as tariffs rise, firms start to slow down production of models previously sent to the U.S.
Alongside a fall in potential revenues, the move could have further knock-on effects with job losses not out of the realms of possibility.
The Office for Budget Responsibility (OBR) has previously stressed that the UK exports of goods to the US account for just 2% of the UK’s GDP.
Meanwhile, the UK sent £8.3billion worth of cars to the US in the last year up to September 2024.
UBS stressed Trump’s tariffs may just be the start with “market volatility” likely if Western nation’s spark into a full-scale trade war.
They commented: “The tariffs could also disrupt supply chains, deter investments, and significantly raise consumer prices, while potentially igniting trade disputes with Europe, Japan, and South Korea”
“We still expect a significant expansion of tariffs, potentially leading to a cycle of tit-for-tat escalation and increased market volatility in the weeks ahead.”
