In a surprising move, US President Donald Trump hinted he might pause the hefty tariffs he slapped on imported cars. That could give global carmakers a bit more breathing room to adjust how and where they build their vehicles.
Speaking to reporters in the White House, Trump said he's “looking at something to help some of the car companies,” adding that manufacturers need more time to shift production from places like Canada and Mexico back to the US. The idea? Give carmakers a break so they can start building cars in America — just not yet.
This comes after a string of back-and-forth decisions on tariffs that have shaken global markets. Trump originally introduced a 25% tax on imported cars back in March and called it permanent. But now, he’s softening — possibly because those decisions have sparked fears of a recession, especially after recent market turbulence in the US.
He’s already tweaked other tariffs too. For instance, his broader tariffs on goods from dozens of countries were reduced to 10% for a 90-day negotiation window, and Chinese electronics even got a temporary discount from 145% to 20%. It’s been a bit of a rollercoaster.
First off, what is a tariff?
A tariff is basically a tax that gets added to the price of imported goods — like cars. So, if the US hits an imported car with a 25% tariff, a £20,000 car could suddenly cost £25,000. The cost is usually passed on to the buyer, meaning you pay more.
Why should you care in the UK?
If Trump puts these car tariffs on hold, there’s a chance we’ll see cheaper prices on some foreign-made cars — especially those from Japan, Germany, and South Korea. Car companies may also start importing more models to the UK that were previously held back due to cost concerns.
So, if you’ve had your eye on something like a BMW, a Kia, or even a Japanese EV, this could work in your favour. Not only could prices go down, but availability might go up too.
But it’s not all good news...
Trump’s been unpredictable when it comes to tariffs. He could hit pause now and then reintroduce the tax later. That uncertainty messes with how carmakers plan their production — and affects what cars we actually get in the UK. You might see delays, limited stock, or rising prices again if tariffs return.
Also, if the tariffs go ahead permanently, it could drive up prices on premium models like BMWs, Audis, and Mercedes-Benz — brands that rely heavily on the US market. To make up for any US losses, they might raise prices in Europe, including here in the UK.
Some carmakers might even shift production or redirect stock to countries with fewer trade barriers. That could make it harder to get certain cars — especially electric ones — just when we need them most. Remember, the UK is banning new petrol and diesel cars from 2035, so demand for EVs is only going to grow.
What the car industry’s saying
Many major car brands — including Ford, GM, and even INEOS Automotive — have urged leaders to sort this out. Some say the EU has been too slow to respond to Trump’s moves, leaving manufacturers exposed.
Industry experts are also warning that tariffs could push up car prices by thousands of pounds. One study found that tariffs on Canada and Mexico alone could raise car prices by up to $12,000 (£9,500+). Ouch.
Mike Hawes, boss of the UK’s motor industry group SMMT, said new tariffs could hurt the UK-US car trade, especially since American and British drivers enjoy swapping cars. He’s pushing for both sides to strike a deal that supports jobs and keeps car prices fair.
Bottom line? If you’re thinking about buying a car — especially something imported or electric — this is one of those global issues that could hit close to home. Prices, availability, and model options could all be affected by whether Trump goes ahead with these tariffs or hits the brakes. For now, it’s a waiting game — but one worth keeping an eye on.
