Why Trump’s Tariffs Could Be the Final Blow
It’s official: the British car industry – what’s left of it – is on its knees. And now, thanks to Trump’s fresh round of protectionist punishment, it might finally be flatlined. According to a blistering Financial Times report, UK luxury carmakers – including Aston Martin, Bentley, Jaguar Land Rover, and McLaren – are staring down the barrel of a 25% US import tariff. The fallout? A potential 25,000 job losses right here in Blighty.
Mike Hawes, the usually composed Chief Executive of the Society of Motor Manufacturers and Traders (SMMT), didn’t mince his words in front of the House of Commons Business Select Committee. He called the impact “severe, significant and immediate.”
No surprise, really. The US isn’t just another market for our posh motors. For some marques, like Aston or Bentley, 30% to 50% of their exports head stateside. That’s a massive chunk of business now sitting on very shaky ground.
“If you can afford a £200k car, you can afford £250k”… really?
That’s the assumption, isn’t it? The idea that the rich don’t blink at a 25% hike. But as Hawes rightly pointed out – “those high-net-worth individuals are shrewd… they’ll hold off, they’ll pause… it’s a discretionary spend.”
In other words, luxury car buyers didn’t get rich by being daft. They’ll sit on their hands until the dust settles. And guess what happens when the order books dry up? Layoffs. Swiftly.
JLR has already paused US shipments, while Aston Martin is bracing for a £30 million hit – a figure that could wipe out its annual profits. Meanwhile, the rest of the industry scrambles to get existing stock across the Atlantic before the tariffs bite fully.
The Government Might Have to Dust Off the Furlough Machine
Yes, you read that right.
The industry’s now openly calling for furlough-style support, echoing pandemic-era policy. That’s how serious it is.
Hawes suggested everything from VAT and NI holidays to temporary HMRC flexibility. Meanwhile, Labour’s Liam Byrne, Chair of the Business Committee, urged ministers to stop hoping for a US trade deal and “be ready with a big, bold lifeline.”
And let’s face it – they’ll need one. Especially since this isn’t just about Trump’s trade tantrums. The British car industry was already on shaky ground:
- Massive EV investments with slower-than-promised returns
- Flatlining car sales across Europe
- Huge factory costs and legacy overheads
- Sky-high VED and insurance on luxury models in the UK
- And let’s not forget the constant threat of theft and crime, especially in London
The Legacy Car Industry vs Reality
We’re witnessing what could be the last rites of Britain’s once world-class car manufacturing industry.
Factories aren’t plug-and-play – they take years and billions to shift or retool. So while the politicians dither and Trump tweets, companies are putting in contingency plans. But as Stephen Phipson of Make UK said:
“That would be the end result of a dramatic reduction in volume… absolutely right.”
Translation? If the orders stop, the jobs go.
And who wins? China.
With its independent ecosystem, rapid growth in the Middle East, and dominance in EV tech, Chinese automakers are waiting in the wings, licking their lips.
So What Now?
The UK Government needs to act fast. This isn’t just about cars – it’s about jobs, export power, and our place in global trade.
The car industry doesn’t need hope. It needs help. Real help.
And us? We need to stay loud. Keep sharing, keep pushing, and keep asking the hard questions.
👉 Drop your thoughts below – should the UK step in and support our carmakers? Or is this the inevitable end of the road for old-school motoring in Britain?
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