Trump has announced 25 per cent tariffs on all cars imported into the US

US President Donald Trump has announced new tariffs on all car and component imports to the United States.

From 2 April 2025, cars imported from around the world - including those from the UK - will be hit with an import duty of up to 25 per cent. From May, the tariff will apply to automotive parts too. Needless to say, it’s a big deal.

According to the Office of National Statistics (ONS) the UK exported £60.4 billion worth of goods to the US in 2023 – of that, car exports totalled £6.4 billion. Since the tariffs could make goods more expensive for US folk to buy, that number is thusly set to drop – not the most welcome news for UK businesses.

This particular move is in addition to the ban that is set to be applied to Chinese and Russian vehicles in 2027, which have been deemed to “threaten to impair the national security of the United States” by the US Secretary of Commerce.

The US government hopes that between banning rivals and applying tariffs to the rest of its competitors, Americans will buy homegrown motors to stimulate growth in the domestic economy. The US president has coupled the tariffs with tax-deductible incentives on loans for US-built car payments.

"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," said SMMT boss Mike Hawes.

"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. The industry urges both sides to come together immediately and strike a deal that works for all."

UK Chancellor Rachel Reeves told BBC News: "We are in talks with the US at the moment to try and carve out a deal for the UK."