Warning Donald Trump's tariffs could 'push up prices' of new cars in the UK
Drivers have been urged to brace for higher car prices as vehicle manufacturers take new measures to combat Donald Trump's proposed tariff on imported models.
An automotive expert has warned that the UK's new car market could be heavily impacted following President Donald Trump's inauguration.
Within a week of returning to the White House, President Trump has reversed nearly 80 policies made by his predecessor Joe Biden, with plans to put tariffs on cars that are imported into the country.
Mike Thompson, COO of Leasing Options, suggested that such tariffs could see the cost of popular models from Europe increase in price to help manufacturers continue to turn profits.
He explained: "If Trump goes ahead with tariffs on European car imports, it could push up the price of premium models like BMW, Audi, and Mercedes-Benz here in the UK.
"These brands rely heavily on sales in the US market, so if tariffs increase their costs there, they’ll likely recover some of those losses by raising prices in other markets. That could leave UK drivers facing higher costs when buying outright."
America is one of the world's largest producers of passenger cars, with around 1.75 million being built in the country during 2023. However, the figure is declining as more manufacturers choose to set up factories in countries with lower labour costs.
During his campaign rally, President Trump highlighted that he wanted to see more car companies return to America, warning that he would impose a 25 percent tariff on models built in Mexico and Canada.
Much like the European Union's tariff on electric cars made in China, this would likely deter new car buyers from choosing imported models, which Leasing Options fears will see the cost of models rise elsewhere in the world, including in the UK.
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Mike also highlighted that President Trump's plans could also cause changes to the supply of new vehicles, with Europe getting fewer petrol models and more EVs.
He added: "We might also see shifts in availability. If manufacturers need to rework their supply chains or adjust how they allocate stock globally, there could be a shortage of certain models in the UK.
"For example, brands like BMW might prioritise sending electric models such as the i4 or iX to markets with fewer trade barriers, potentially limiting their availability here. This is particularly concerning as the UK approaches its 2035 zero-emissions target."
One previous policy that President Trump has already reversed is the executive order to encourage more motorists to make the switch from a petrol or diesel-powered car to an electric vehicle.
Introduced in 2021, this order included plans for electric vehicles to have a 50 percent share of the market by 2030 and a total ban on new petrol and diesel models by 2035.
The UK currently has an even stricter mandate, which will require new petrol and diesel cars to be taken off sale in 2030, with owners only able to buy models with a combustion engine used.
