UK Car Exports to US Rebound After Tariff Cut
British car exports to the United States rose in July, boosted by a new trade agreement that eased tariffs after months of decline.
Data from the Society of Motor Manufacturers and Traders (SMMT) shows exports climbed 6.8% during the month, ending a three-month slump. The increase followed a deal between London and Washington that reduced import taxes on UK cars to 10%, down from the 27.5% rate imposed by US President Donald Trump in April.
The tariff cut applies to the first 100,000 vehicles shipped annually – roughly the same number sent to the US last year. Cars above that quota will still face the higher 27.5% duty.
The SMMT described the US as Britain’s largest single national market for vehicles, noting that July’s figures “illustrate the impact of this deal,” though it warned the wider industry continues to struggle.
The US accounted for 18.1% of all UK car exports in July, while the European Union remained the largest destination, taking 45.6%. Premium brands such as Jaguar Land Rover (JLR), which temporarily halted US shipments when the higher tariffs were first announced, have since resumed exports.
Overall, UK car manufacturing rose for the second consecutive month in July thanks to stronger sales both at home and abroad. Yet total vehicle output for the year remains down 11.7%, and last month’s production levels were the lowest since 1953.
Mike Hawes, SMMT chief executive, said the sector was still facing “turbulent” conditions, citing weak consumer confidence, volatile trade flows and fierce global competition. “Given this backdrop, another month of growing car output is good news,” he added.
