The Society of Motor Manufacturers and Traders (SMMT) reported that UK car production for May was at its lowest point since 1949 due to US tariffs impacting exports.
Production decreased by almost 30% compared to the previous year, with only 49,810 units produced. This is the lowest figure in 76 years, excluding the period affected by the 2020 Covid pandemic lockdowns.
The SMMT stated that exports to the US were cut in half as a result of President Donald Trump’s tariffs, causing some UK car manufacturers to stop shipments. However, the SMMT remains optimistic as US import taxes on UK cars are set to decrease by the end of June.
The decrease in exports to the US was a direct result of the new 25% tariffs on cars and car parts announced by the Trump administration in March. This caused a decline in demand, leading many manufacturers to halt shipments, according to the SMMT.
Jaguar Land Rover (JLR) and Aston Martin were among the manufacturers who suspended or reduced exports to the US after the tariffs were imposed in April.
The SMMT also noted that the shift towards electric vehicle production in UK factories also contributed to the decrease in production. For example, JLR is transitioning Jaguar to an all-electric brand and Nissan is preparing for a new Leaf model.
In May, the UK and US reached an agreement to reduce import taxes on 100,000 British cars per year from 25% to 10%. This matches the number of vehicles exported by the UK last year. Any exports beyond this quota will be subject to a 27.5% tax. The SMMT hopes that this deal, set to take effect before the end of June, will alleviate the current 25% tariffs and boost production.
Mike Hawes, the SMMT’s chief executive, acknowledged the challenges faced by the automotive industry in 2025 but expressed optimism for the future. He highlighted the importance of trade deals with key markets such as the US, India, and the EU, as well as UK government strategies focused on industry and trade, in aiding the industry’s recovery.
The SMMT also mentioned the UK’s recently-announced industrial strategy, which includes plans for lower energy costs for manufacturers and a £2.5bn fund for automotive capital and research and development.