How Will Trump’s Import Tariffs Impact UK Car Manufacturers?

The UK automotive industry has long been a powerhouse of international trade, with eight in 10 cars produced in Britain destined for export. High-end manufacturers, in particular, have a strong presence in the US market, making them highly vulnerable to new 25% import tariffs set to take effect on April 3rd under Donald Trump’s latest trade policies.

The UK’s Reliance on Exports

In 2024, nearly 780,000 cars were manufactured in the UK, with 467,937 exported to the EU, US, and China. While the EU remains the UK’s largest market, the US ranks second, accounting for 16.9% of exports. Luxury brands such as Bentley, Rolls-Royce, Aston Martin, and McLaren are particularly reliant on American buyers, making them some of the hardest-hit by the new tariffs.

Which UK Carmakers Will Be Most Affected?

Bentley:

With its Crewe-based production of models like the Continental GT and Bentayga, Bentley is a major exporter, with 30% of its 2024 deliveries (3,180 vehicles) headed to the US. CFO Jan-Henrik Lafrentz has already confirmed that the additional tariffs will ultimately be passed on to consumers.

Rolls-Royce:

The luxury brand, which produced 5,712 cars at its Goodwood facility in 2024, considers the US its largest market. While Rolls-Royce is evaluating the impact of tariffs, it maintains that strong global demand helps cushion the blow.

Aston Martin:

Known for its James Bond heritage, Aston Martin relies heavily on US sales. In 2024, the company generated one-third of its £1.6bn revenue from the American market, surpassing both the UK and Asia Pacific regions.

McLaren:

The Woking-based supercar manufacturer exported over a third of its 2,137 vehicles to North America in 2023. Early 2024 reports indicate a strong demand for the 750S Coupe and Spider models, making the US a critical revenue stream.

Will Mass-Market Manufacturers Be Impacted?

While high-end brands face direct cost increases, mass-market manufacturers like Nissan, Toyota, and Mini are less exposed. Nissan’s Sunderland plant primarily supplies the European market, and Toyota’s Burnaston facility produces hybrid Corollas destined for Europe. Meanwhile, Mini exported 26,000 vehicles to the US in 2024, but BMW has been vocal about its support for reducing trade barriers.

What’s Next for the UK Auto Industry?

As the tariff deadline approaches, UK manufacturers are assessing their options. While luxury brands may absorb the cost or pass it on to affluent buyers, increased costs could make British-made vehicles less competitive in the US market. Some hope a UK-US trade deal may provide relief, but for now, the industry faces uncertainty.

At Approved Motor Finance, we understand how trade policies impact both manufacturers and customers. Whether you're looking to finance or refinance a vehicle, our team is here to provide expert guidance in a changing market.

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