With the US-UK trade deal taking effect today, British car makers are getting ready to send a series of major shipments across the Atlantic to meet pent-up demand.
US President Donald Trump imposed a range of tariffs on foreign-made goods in April in an attempt to rebalance what he perceived as trade deficits. The US initially raised tariffs on UK-made cars to 25% for all passenger vehicles and light trucks; this was on top of a flat 10% tariff on most other UK goods.
But following negotiations with the UK government, the tariffs will now be dropped to a less stringent 10% on the first 100,000 cars exported to the US. The US was the UK’s largest export market for cars in 2024 – making up 27.4% of total exports. With around 102,000 vehicles exported last year, the vast majority should be sold within the tariff limits if similar quantities are sent over this year.
The tariffs proved calamitous for British car makers, with exports to the US immediately dropping by about half. Aston Martin...