UK car exports to the United States dropped sharply in May, exposing the severe impact of recent trade tariffs imposed during escalating economic tensions.
Official industry data reveals that exports plummeted by 55.4% compared to the previous month, signalling a major blow to the British automotive sector.
The figures, released by the Society of Motor Manufacturers and Traders (SMMT), show a stark contrast to April’s relatively minor decline of just under 3%.
The significant drop was directly linked to the 25% import tariff introduced by the Trump administration on 3 April, a move that intensified the ongoing trade conflict and disrupted international supply chains.
In response, major manufacturers such as Jaguar Land Rover — the UK’s leading car exporter to the US — temporarily halted shipments to the American market. The US remains the UK’s most valuable automotive export destination, worth £9 billion in 2024, with luxury brands like Bentley, Rolls-Royce, and Aston Martin also heavily reliant on American demand.
While tensions have slightly eased, with tariffs recently reduced to 10% for up to 100,000 vehicles annually, industry analysts caution that the sector is far from recovery. The broader impact of the trade war, combined with global economic uncertainty and weak demand for electric vehicles, continues to challenge manufacturers.
Alongside the US fallout, domestic production also struggled in May. UK car and commercial vehicle output fell by 33% to just 49,810 units — marking the fifth consecutive monthly decline. Excluding the pandemic years, it was the worst May production performance since 1949. The SMMT attributes this to ongoing model transitions and reduced demand in key export markets.
Shipments to the European Union, traditionally the largest export destination, fell by 22.5%, while production for the UK domestic market also declined. Industry leaders have long urged the government to take bolder action to support competitiveness, particularly in the electric vehicle sector, where uptake remains sluggish both at home and abroad.
Recent government pledges to tackle high industrial energy costs have been welcomed as part of a broader industrial strategy. With confirmed trade agreements now in place and efforts to improve relations with the EU, hopes remain that targeted policy and investment will help revitalise the UK’s struggling automotive sector.
As 2025 unfolds, the path to recovery hinges on swift policy implementation, competitive energy pricing, and a stable international trade environment. The coming months will be critical in determining whether British car manufacturers can regain their footing and drive growth once again.
