The Society of Motor Manufacturers and Traders (SMMT) revealed this Thursday that US tariffs have contributed to a record decrease in new vehicle production in the UK in the first half of the year.
According to the data released, in the first six months of 2025, automotive production decreased by 11.9%, to 417,232, compared to the same period in 2024.
“In historical terms, it is not as bad as the impact of the COVID-19 pandemic, but if we exclude 2020, it is the worst first half since 1953”, said SMMT Chief Executive Mike Hawes to a group of journalists, including those from the “Lusa agency.”
The uncertainty caused by the increase in trade tariffs on the import of British vehicles at the end of March and early April to 27.5% disrupted exports to the US, the second largest market.
The SMMT considers the agreement negotiated by the British Government, which reduces US tariffs on British cars to 10%, a “diplomatic triumph”.
The 10% tariff for the first 100,000 vehicles “is the new normal” and a favorable figure compared to other agreements, such as the one announced between the US and Japan on Wednesday, which set a tariff of 15% for Japanese cars.
Of the vehicles produced in the United Kingdom, 77% are exported, of which 54% go to the European Union, 16% to the USA, and 7.5% to China. Even at this reduced level of production, the sector continues to generate around €19 billion annually.
The chief executive of SMMT believes that the British automotive industry has reached “the lowest point”, as a result of various structural changes such as factory closures, the transition to electric vehicles, and international pressures.
