UK car exports to US recover after trade deal

UK vehicle exports to the United States rebounded in July after London and Washington struck a trade deal lowering tariffs on the sector, industry figures showed Thursday.

According to the Society of Motor Manufacturers and Traders (SMMT), exports to the US rose 6.8% in July, reaching nearly 10,000 units, following three consecutive months of declines. In May alone, shipments had plunged 55.4% year-on-year, with smaller drops in April and June.

“The US remains the largest single national market for British-built cars, underscoring the importance of the UK-US trade deal,” the SMMT said. “July’s performance illustrates the immediate impact of this agreement.”

The trade pact, finalized in May and effective from June 30, cut tariffs on UK car exports to 10%, capped at 100,000 vehicles per year. This followed a sharp hike in April, when US President Donald Trump raised tariffs to 27.5%, forcing automakers such as Jaguar Land Rover (JLR) and Aston Martin to scale back or suspend shipments.

The UK exports nearly 80% of its car production, with the EU as its main destination. But the US is a critical market for British luxury brands, including Bentley and Rolls-Royce, both owned by German parent companies.