Rolls-Royce owner Donald Trump has just led a hammer to the luxury cars market in the amount of $ 8 billion
Automobile sector in the UK, appreciated for its luxury manufacturers such as Bentley and Aston Martin, was found after President Donald Trump moved forward with aggressive tariffs that threaten to bring knees to the lucrative export market.
Trump administration dazed 25% of Imported Tariffs on cars and some parts of cars, including engines and drives, on Wednesday in an attempt to return production and convince foreign competitors to set up a store in the United States
It is a news that will send shivering down the spines of luxury manufacturers in the UK, who make a handful of cars every year for rich American customers, including President Trump.
The car market is a jewel in the crown of the British processing industry, the home of luxury giants to make car, including Bentley, Aston Martin, Rolls Royce, Lotus, McLaren and Jaguar Land Rover, and all products most of its cars in the country. With the exception of JLR, their combined annual revenues exceed £ 6.4 billion ($ 8.3 billion).
Four of every five cars made in the UK is exported to other markets. Analysis of the company manufacturers and engine traders (SMMT) revealed that the entire car market was British the most valuable Created export of goods in 12 months to June last year, worth £ 46.8 billion ($ 60.5 billion).
The US is by far the largest British export market with one automatic cars, receiving 17% of cars in the country. Last year, the UK delivered cars worth £ 6.4 billion ($ 8.3 billion), with several parts, in the USA
North America is also by far the largest Jaguar Land Rover market. The region, which also includes Canada and Mexico, imported a combined 241,000 JLR vehicle in 2024. Stocks in the Dad Motors, which owns JLR, fell 5.5% in early trading.
In recent months, European car manufacturers on the mass market have outlined plans to bypass Trump’s incoming tariffs. BMW has objects in the US that is ready to pick up the production of demand for Americans. Stellantis has its own fleet of American brands, including Ram, Dodge and Chrysler, which could compensate for a decline in demand in its European companies. Volkswagen, who he said would be minimally influenced by the tariffs, has its large plant of tendencies to which it can rely for production.
However, there is no obvious solution for car manufacturers in the UK. A large part of the attraction of his luxury cars, especially foreign customers, lies in the legacy behind their production. Bentley, for example, continuously made his cars in his Crewe factory since 1946.
Due to the many lower levels of production, any drop in the production of luxury car producers can have a huge effect on profit margins.
Rolls-Royce, a car manufacturer who Trump accounts as a customerIt makes only 0.02% of the total cars selling the parent, BMW Group. All Rolls-Royce cars are carefully made at the Goodwood Factory in Chichester. The company announced in January a An investment of £ 300 million at a factory that will help his spread to adjustment.
Aston Martin, meanwhile, delivered less than 2,000 vehicles to America last year, but generated $ 630 million in revenue from the region. The shares in the car manufacturer fell more than 5% in the early morning trading.
The reality of the prestigious car market in the UK leaves it with several other options except for the cost of costs to its rich customers, hoping that Trump’s exclusivity will have practicality. Bentley’s Executive Director, Frank-Steffen Walliser, said so many last week When he warned that additional expenses would eventually land on their rich customers.
Panika was clear of SMMT executive director Mike Hawes, who invited the UK on Thursday and us to reach the table to avoid tariffs that would cause pain on both sides of the Atlantic.
“Today’s announcement of President Trump is not surprising, but still disappointing if, as it seems likely, additional tariffs apply to cars made in the UK,” Hawes said.
“Auto industry in the UK and the United States have a long and productive relationship, and US consumers enjoy vehicles built in Britain by some iconic brands, while thousands of British drivers buy cars made in America.”
This story is originally shown on Fortune.com
