Fresh Upheaval As Car Tariffs Announced

27th March 2025

William Bain, BCC Head of Trade Policy, reacts to the planned introduction of an extra 25 percent tariff on UK exports of cars and other automotives to the United States

Reacting to the planned introduction of an extra 25 percent tariff on UK exports of cars and other automotives to the United States, William Bain, BCC Head of Trade Policy, said:? 

"Businesses were already looking with trepidation towards next week’s planned reciprocal tariffs before this fresh upheaval was announced. 

“Around half of the cars purchased in the US are imported so this will pass through into much higher costs for US consumers. If fully extended to all components it will affect supply chains too. 

“The impact of this on the UK car industry cannot be overstated. Cars are the UK's biggest goods export to the US, with £6.4bn in sales in 2023, led by iconic manufacturers such as Aston Martin, Jaguar, and Land Rover. 

“Piling these tariffs on top of the others already expected on 2 April, will sap business confidence and add further uncertainty for both UK and US firms. 

“We urge the UK Government and the US Administration to continue intensive dialogue over the coming days and weeks to reach a mutually beneficial agreement on technology and trade.  

“This needs to provide certainty for business and consumers alike on the future tariff landscape and remove unnecessary levies already in place."