Big news coming out of the US this week – Donald Trump is expected to roll back some of the car import tariffs he introduced last month. But while this might sound like a win for the global auto industry, it’s not exactly the good news UK carmakers were hoping for.
What’s Going On?
Just weeks ago, Trump hit the brakes on foreign car imports with a massive 25% tariff on all vehicles and car parts entering the US. It was a bold move that sent shockwaves across the industry, causing chaos for companies like Jaguar Land Rover (JLR), who even paused deliveries to the States.
Now, the White House has hinted that some of those rules will be softened — at least when it comes to car parts.
Why the Change?
Here’s the thing: American car giants like Ford, GM, and Tesla rely heavily on parts from places like China. So, with the tariffs making things more expensive across the board, US carmakers started feeling the pressure too.
The updated plan? The 25% tax on parts stays in place, but manufacturers will now get some money back based on how valuable the final car is. Plus, they’ll avoid additional fees on things like imported steel and aluminium — all of which helps ease costs for cars built in the US.
What About UK Brands?
Unfortunately, this tweak won’t help companies that actually build cars in the UK and ship them to the States. The US is standing firm on tariffs for fully-built imported vehicles — bad news for brands like MINI, Rolls-Royce, Bentley, McLaren, and JLR.
And since America is a major export market for the UK car industry, this uncertainty is a real headache.
Is a Trade Deal Coming?
The UK government isn’t sitting still, though. Chancellor Rachel Reeves has suggested Britain could lower its own tariffs on US-built cars in return for better terms. She’s hoping for a broader trade agreement that removes both “tariff and non-tariff barriers” between the two nations.
So far, no official deal – and the UK’s automotive trade body hasn’t commented yet – but talks are happening.
What’s Next?
Trump hasn’t made a public announcement yet, but it’s expected he’ll unveil the new plan at an upcoming rally in Michigan – the beating heart of the US auto world. If you're watching closely, that moment could give us a clearer picture of where trade relations between the US and UK are headed.
Stay Tuned: Whether you're a car enthusiast, working in the auto industry, or just interested in how global trade impacts UK jobs, this is a story to watch. We'll keep you updated as soon as more details land.
