CNBC: UK car production plummets to lowest level since 1949, Trump's tariffs hit the industry hard

CNBC June 30 report, according to the latest data from the Society of Motor Manufacturers and Traders (SMMT), UK car production in May was only 49,810 units, a sharp drop of 32.8% year-on-year, marking the lowest level since 1949 (excluding the period of factory shutdowns due to the pandemic in 2020). This is the fifth consecutive month of significant decline in UK car production, mainly affected by multiple factors including US tariffs, model updates, and factory reorganization.

Data shows that car exports to the two major markets, the EU and the US, fell by 22.5% and 55.4%, respectively. The US market was particularly severely impacted, as the Trump administration imposed a 25% tariff on imported cars starting in April, forcing British luxury carmakers such as Aston Martin and Jaguar Land Rover to suspend exports to the US. Although Trump signed an executive order in May to reduce the tariff on the first 100,000 cars exported by British automakers to the US to 10%, the industry's recovery will take time.

Mike Hawes, CEO of SMMT, said: "2025 will be an exceptionally difficult year for the UK automotive industry." He also pointed out that the newly reached UK-US trade agreement will save British automakers hundreds of millions of pounds annually, and improved relations with the EU could help the industry gradually recover. As an important pillar of the UK's foreign trade, the automotive industry had exports to the US worth £9 billion (about $1.236 billion) last year, accounting for more than 27% of the UK's total exports.

In the first five months of this year, the UK's total car production dropped 12.9% compared to the same period in 2024, reaching 348,226 units. If this trend continues, annual production may fall to the lowest level since 1953. Industry insiders are concerned that, against the backdrop of turbulent global trade environment, the winter of the UK automotive industry may continue.

Original article: https://www.toutiao.com/article/1836301943725056/

Statement: This article represents the views of the author.