UK Car Production: May 2024 – 76-Year Low & Trump Tariffs
- British vehicle production experienced a dramatic drop in May, reaching its lowest point since 1949.
- The primary factor behind this downturn is attributed to tariffs imposed by former U.S.
- Relief is anticipated with the scheduled implementation of the U.S.-UK trade deal.
UK car production plunged to its lowest level since 1949 this May,a direct result of former U.S. President Trump’s tariffs and their lingering impact on the automotive industry. British carmakers faced significant hurdles, with shipments to the U.S. plummeting and exports to the EU also experiencing declines. The anticipated U.S.-UK trade deal offers a glimmer of hope, with a reduction in tariffs expected to ease pressures on the primary_keyword, but logistical challenges persist.The secondary_keyword, encompassing electric vehicle mandates, adds further complexity. News Directory 3 provides detailed insights into the ongoing challenges and potential solutions within the automotive industry. Discover what’s next for UK car manufacturing and its future in the global market.
UK Car Production hits Historic Low Amid Tariff Impact
Updated June 27, 2025
British vehicle production experienced a dramatic drop in May, reaching its lowest point since 1949. The Society of Motor Manufacturers and Traders (SMMT) reported a 33% decline compared to the previous year,with output totaling just 49,810 units. This collapse in automotive industry output marks the fifth consecutive month of decline.
The primary factor behind this downturn is attributed to tariffs imposed by former U.S. President Donald Trump, which led British luxury brands like Aston Martin and Jaguar Land Rover to halt vehicle shipments to the U.S. starting in april. Car shipments to the U.S. subsequently plummeted by 55%, reducing the U.S. share of exports from 18% to 11%. Exports to the European Union also fell, declining 22.5%.
Relief is anticipated with the scheduled implementation of the U.S.-UK trade deal. The agreement,announced May 8,includes a reduction of the American tariff on cars from 27.5% to 10% for the first 100,000 vehicles shipped annually from the UK. This trade deal offers hope for the automotive industry and a boost to UK car exports.
Despite the challenges, Mike Hawes, SMMT’s chief executive, expressed optimism, citing the trade agreement and the UK’s industrial strategy aimed at reducing energy costs. The automotive industry is a key sector, and the government is keen to support its recovery.
However, some car executives have voiced concerns about the slow implementation of the U.S.-UK trade deal. Adrian Hallmark, Aston Martin’s chief executive, highlighted the logistical challenges of invoicing three months’ worth of sales in a single day when the deal takes effect June 30. The automotive industry faces complexity and dynamism.
“It comes live on the 30th of June . . . so we’re planing to invoice three months’ worth of sales in a 24-hour period,” Hallmark said. “That’s complexity and dynamism.”
Hallmark added that the deal would leave British carmakers “less worse off than some of our European and non-European competitors.”
Even before the trade war, the UK’s automotive industry had been struggling with electric vehicle sales targets. Stellantis cited the cost of complying with the government’s “zero emission vehicle mandate” as a factor in closing its Luton van factory. Ford also cut 800 UK jobs last year, blaming the mandate amid a wider European restructuring. The automotive industry faces notable challenges.
What’s next
The industry is closely watching the implementation of the U.S.-UK trade deal and hoping for a swift resolution to logistical hurdles.The automotive industry is also adapting to electric vehicle mandates and seeking government support for a sustainable future.