Donald Trump’s surprise move to impose a 25% auto tariff on all imported cars and car parts has shaken global markets and triggered serious concerns for UK carmakers and international supply chains.
The announcement wiped over €13 billion from the value of major European automotive companies within hours. MotorVise called the move “a broadside against the entire global auto industry.”
Industry analysts warn the tariffs could deeply affect supply chains, investor confidence, and manufacturing jobs — particularly in the UK, where the US was the top export market for British-made cars in 2023, accounting for £6.4 billion, or nearly 20% of total exports.
Major British manufacturers like Jaguar Land Rover, Aston Martin, and Rolls-Royce now face serious risks to their US sales. Aston Martin shares dropped nearly 9% following the announcement.
Although the UK Government condemned the decision, calling it ‘damaging protectionism,’ it has avoided retaliation to protect ongoing US-UK trade talks. No exemption has been secured so far. Trump defended the tariffs as a way to boost American jobs, calling it ‘liberation day’ for the US auto sector.
Fraser Brown of MotorVise argued the reality is more complex: “Today’s car industry is global by design. Vehicles aren’t just assembled in one country; they’re born from parts and expertise spanning continents.”
He warned that the 25% increase in cost for British cars in the US would hurt competitiveness — especially with US consumers already feeling the squeeze of inflation.
Brown also highlighted that the move comes at a critical time for the electric vehicle (EV) transition, as companies are currently reviewing investment plans for gigafactories, R&D hubs, and key component production.
“The automotive industry thrives on scale, predictability, and open trade,” he said. “Trump’s tariffs undermine all three.”
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