Rolls-Royce Donald Trump has connected a hammer to the $ 8 billion in the UK luxury car market
The UK car sector, which enjoys the granting of luxury manufacturers such as Bentley and Aston Martin, is reeling after President Donald Trump moved forward with aggressive definitions threatening to bring in the country’s profitable export market to its two knees.
Trump administration Slap 25 % of the customs tariffs on cars and some auto parts, including engines and energy engines, on Wednesday in an attempt to re -manufacture and persuade foreign competitors to create a store in the United States
It is the news that will go to a tremor below the backbone of the UK’s luxury manufacturers, who make a handful of cars every year dedicated to the wealthy wealthy buyers, including President Trump.
The auto market is a jewel in the crown of the UK industrial industry, the home of the luxury auto industry giants including Bentley, Aston Martin, Rolls -Royce, Lotus, McLaren, and Jaguar Land Rover all produce most of their cars in the country. With the exception of JLR, its annual revenues combined exceeding 6.4 billion pounds ($ 8.3 billion).
Four cars are exported out of every five cars made in the United Kingdom to other markets. An analysis of the SMMT and the SMM is found that the entire car market was the United Kingdom The most valuable The export of goods manufactured in 12 months to June last year, at a value of 46.8 billion pounds ($ 60.5 billion).
The United States is largely the largest export market in the UK, with 17 % of the country’s cars. Last year, the United Kingdom shipped 6.4 billion pounds ($ 8.3 billion) of cars, with more in parts, to the United States
North America is also the largest market for Jaguar Land Rover. The region, which also includes Canada and Mexico, imported a combined JLR vehicle 241,000 in 2024. The shares in Tata Motors, which owned JLR, decreased by 5.5 % in early trading.
In recent months, European car manufacturers with a comprehensive market have set plans to circumvent the Trump tariff. BMW has facilities in the United States ready to capture the demand for production for Americans. Stelantis has a fleet of American brands, including RAM, Dodge and Chryler, which can compensate for a decrease in demand in its European business. Volkswagen, which she said will be affected by the minimum definitions, has a factory for the Great to rely on production.
However, there is no clear solution to UK car makers. It lies a lot of the attractiveness of its luxury cars, especially for foreign buyers, in the legacy behind their production. Bentley, for example, has constantly made its cars in its factory since 1946.
Due to much low production levels, any decrease in the production of luxury car manufacturers can have a significant impact on profit margins.
Rolls -Royce, auto maker Trump is considered a clientOnly 0.02 % of the total cars sold by her father, BMW group. All Rolls-Royce cars are carefully designed at the Goodwood Factory in Chichester. The company announced in January a 300 million pounds in investment In the factory to help expand customization.
Meanwhile, Aston Martin shipped less than 2000 cars to the Americas last year, but achieved revenues from the region 630 million dollars. The shares in the car maker decreased more than 5 % in trading early in the morning.
The fact that the prestigious car market in the United Kingdom leaves it with some options, unlike transferring costs to its wealthy customers, in the hope that the uniqueness will exceed the practical application. Bentley CEO, Frank Stephen and the button, He said this last week When he warned that additional costs are likely to land on her wealthy buyer.
The panic was clear from the CEO of SMMT, Mike Hez, who urged the United Kingdom and the United States on Thursday to come to the table to avoid the definitions that would cause pain on both sides of the Atlantic.
“The announcement of today by President Trump is not surprising, but, however, disappointing if, most likely, the additional tariff must apply for the UK’s cars,” he said.
“The auto industries in the United Kingdom and the United States have a long -term and productive relationship, as American consumers enjoy building in Britain by some iconic brands, while thousands of UK drivers buy cars made in America.”
This story was originally shown on Fortune.com
