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

Business reporter, BBC News

An industrial group said that when UK automobile production was hit by US tariffs in exports, the lowest level for May since 1949.
According to the Motor Manufacturers and Traders Association (SMMT), it has fallen about one -third compared to the previous year and the 2020 Covid Pandemic lockings have been the lowest figure for 76 years.
President Donald Trump’s tariffs caused some British automobile manufacturers to stop shipments, exports to the United States was halved.
However, the US said that import taxes on UK cars will be cut by the end of June and cause optimism.
The decline in exports to the United States came after the Trump administration announced a 25% tariff in automobile and car parts in March.
SMMT, this “depressive demand instantly forced many manufacturers to stop shipment,” he said.
Jaguar Land Rover suspended posts sent to the United States in April, while Aston Martin reduced exports after the tariffs were applied at the beginning of the month.
The US share of the UK exports fell from about fifth to a level in May.
SMMT, production factories in the production of electric vehicle production continues to be shot with the work, he said.
However, in May, the United States and the UK reached an agreement, including the reduction of import taxes on 100,000 British cars per year from 25% to 10%.
This matches the number of vehicles exported by England last year.
Cars exported above the quota will be subject to 27.5% tax.
SMMT, the agreement is expected to enter into force before the end of June, so the current 25% tariffs “I hope there must be a short -lived restriction,” he said.
Mike Hawes, General Manager of SMMT, said 2025 was a “incredibly challenging year”, while still “a little optimistic for the future”.
Authorized, “Important Markets”, including the US, India and the EU, as well as the UK government strategies on industry and trade should “help heal”, he said.
The SMMT also said that the recently announced UK industrial strategy includes plans for lower energy costs for manufacturers and £ 2.5 billion automotive capital and research and development funds.