Trump eases tariffs on UK cars: is this a win for British buyers?
June 17, 2025 by Siobhan Doyle
Car changing is a big deal
The UK has secured a partial win in ongoing trade talks with the US. What does the new deal mean for you, your car, and the future of British motoring?
US president Donald Trump has signed an executive order cutting import tariffs on UK-made cars sold in the US, backing up a trade deal agreed with the UK last month.
Now, British carmakers can export up to 100,000 cars a year to the US with a lower 10% tariff, way better than the tough 25% rate introduced earlier this year.
UK prime minister, Keir Starmer, called it a “very important day” for both countries at the G7 summit in Canada. UK carmakers are happy about it, but what does this mean for drivers in the UK?
Remember, you can buy a brand new or used car right here on Carwow. And you can also sell your car, too. We’re here to help you through every step of your car-changing journey.
What do reduced tariffs mean for manufacturers and buyers?
British carmakers such as Mini, Jaguar Land Rover, and Bentley rely heavily on exports – especially to the US. With tariffs going down, they’re expected to boost production again, which helps keep jobs safe and supply chains moving.
That’s great news for the UK economy and, indirectly, for buyers too. A stronger car industry means better service for customers, ongoing investment in local factories, and new models made right here.
On the flip side, some manufacturers might focus more on sending their high-end or specialty cars to the US to make bigger profits. That could mean longer wait times or fewer options for certain models in the UK, at least for a bit, especially if demand in the US picks up.
And don’t expect prices to drop overnight. This deal won’t immediately change new car prices here. But it could help carmakers avoid hikes caused by delays or production problems. If things run smoother, UK buyers might get steadier prices and quicker deliveries.
But tariff troubles aren’t over yet
One big thing missing from the deal is steel. The UK was hoping tariffs on steel and aluminium – both critical for car production – could be dropped, but that part hasn’t been sorted yet. Trump said more details are coming “in a little while,” but for now, UK carmakers still have to deal with higher costs on raw materials, which could eventually mean pricier cars.
The deal lets up to 100,000 UK cars enter the US each year with the lower tariff. This is great – but if they go over that limit, any extra cars could still get hit with the full 25% tax, which makes planning tricky for manufacturers.
Finally, there’s still some confusion about how exactly all this will work in practice, and until the rules get clearer, things such as customs checks and paperwork could create short-term friction.
Is this a sign of strength, or a temporary fix?
Starmer called the deal a real “sign of strength” for the UK’s relationship with the US, especially at a time when global trade tensions are causing headaches for lots of industries. But with important issues such as steel tariffs still not sorted, and bigger questions about the UK’s future trade plans hanging in the air, this feels like just one step in a longer process.
“This is great news for the UK automotive industry because it helps avoid the worst tariffs and lets many manufacturers start delivering cars again soon,” said Mike Hawes, SMMT Chief Executive. “The fact the UK has secured a deal, ahead of many competitors, and which makes automotive a priority, should be recognised as a significant achievement.”
Bottom line for UK drivers
For now, drivers in the UK probably won’t see prices drop straight away, but this tariff relief is a positive step for British carmakers and the wider economy. Over time, having a strong export market should mean more stable production here at home – and that helps keep new models coming off UK assembly lines.
That said, there could be some short-term bumps: popular or luxury cars might get sent to the US first, and steel prices are still a worry. So if you’re shopping for a new car, what happens next could depend on the model you want, and how patient you are willing to be.
Car change? Carwow!
Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.
Click here to follow us on WhatsApp, where you can keep up-to-date with all the latest news, reviews, advice guides and videos.