UK car production fell to 76-year low for May as US tariffs hit exports

Tom EspinerBusiness reporter, BBC NewsReutersUK automobile manufacturing sank to its lowest stage for Could since 1949 as US tariffs hit exports, an business group has stated.Manufacturing fell by practically a 3rd from a yr earlier to 49,810 models, in response to the Society of Motor Producers and Merchants (SMMT), which – excluding the 2020 Covid pandemic lockdowns – was the bottom determine for 76 years.Exports to the US halved as President Donald Trump’s tariffs precipitated some UK automobile makers to halt shipments.Nonetheless, US import taxes on UK vehicles are resulting from be lower by the top of June, giving trigger for optimism, the SMMT stated.The drop in exports to the US got here after the Trump administration introduced new 25% tariffs on vehicles and automobile elements in March.This “depressed demand immediately forcing many producers to cease shipments”, the SMMT stated.Jaguar Land Rover suspended shipments to the US in April, whereas Aston Martin diminished exports, after the tariffs have been imposed early within the month.The US share of UK exports fell from practically a fifth to only over a tenth in Could.Manufacturing was additionally hit by persevering with work to alter factories over to electrical automobile manufacturing, the SMMT stated.Nonetheless, in Could the US and UK reached an settlement that included lowering import taxes on 100,000 British vehicles per yr from 25% to 10%.This matches the variety of automobiles the UK exported final yr.Any vehicles exported above the quota will likely be topic to a 27.5% tax.The deal is because of come into power earlier than the top of June, so the present 25% tariffs “ought to hopefully be a short-lived constraint” on manufacturing, the SMMT stated.Mike Hawes, the SMMT’s chief government, stated whereas 2025 had been “an extremely difficult yr”, there was nonetheless “some optimism for the longer term”.He stated commerce offers with “essential markets”, together with the US, India, and the EU, plus UK authorities methods on business and commerce, “ought to assist restoration”.The SMMT additionally stated the recently-announced UK industrial technique included plans for decrease power prices for producers and a £2.5bn automotive capital and analysis and growth fund.