UK car producers urge deal to avoid 'disappointing' US tariffs

BSS
Published On: 27 Mar 2025, 13:51

LONDON, March 27, 2025 (BSS/AFP) - The United States and Britain must come together to strike a deal that avoids President Donald Trump's "disappointing" tariffs on foreign-made cars, the UK trade body for the sector urged.

"The industry urges both sides to come together immediately and strike a deal that works for all," Mike Hawes, chief executive at the Society of Motor Manufacturers and Traders, said in a statement late Wednesday following Trump's tariffs announcement.

"The UK and US auto industries have a long-standing and productive relationship, with US consumers enjoying vehicles built in Britain by some iconic brands, while thousands of UK motorists buy cars made in America," Hawes noted.

Trump announced Wednesday steep tariffs on auto imports and parts, provoking threats of retaliation from trading partners ahead of further promised trade levies next week.

"What we're going to be doing is a 25 percent tariff on all cars that are not made in the United States," Trump said, as he signed the order in the Oval Office.

The duties take effect at 12:01 am (0401 GMT) on April 3 and impact foreign-made cars and light trucks. Key automobile parts will also be hit within the month.

Hawes said that "rather than imposing additional tariffs, we should explore ways in which opportunities for both British and American manufacturers can be created as part of a mutually beneficial relationship, benefitting consumers and creating jobs and growth across the Atlantic.

Britain's car-making industry is dominated by foreign players, including Nissan, Peugeot-owner Stellantis and BMW which makes the Mini.

The majority of their UK-produced vehicles are for export, mostly to the European Union.

Speaking at the end of January, Hawes said the United States was "an important market" for UK-produced luxury brands such as Bentley and Rolls-Royce, adding that this allowed for "a greater opportunity to absorb" tariffs.

 

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