Donald Trump's 10% auto tariffs split UK car industry after 'historic' announcement - 'Worse than before!'

The announcement focused on improving trading terms between the two superpowers, as well as tackling some of President Trump's controversial tariffs.

US Secretary of Commerce Howard Lutnick confirmed that the UK would see a tariff worth 10 per cent on 100,000 cars imported to the US, down from a lofty 27.5 per cent.

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It is believed that any cars sold after the 100,000 quota will face the 27.5 per cent tariff, which could cause issues with around 102,000 cars exported to the US last year.

Commenting on the new tariff rates, Tom Jervis, Consumer Editor at Auto Express, said the announcement was "timely" but would only provide "limited relief" to a struggling industry.

He noted that some manufacturers, like Jaguar Land Rover and Aston Martin, had already paused exports to the US in response to the initial tariff announcement in April.

Jervis added: "Keir Starmer has, in the last few months of his premiership, attracted some rightful criticism, however, this latest development is certainly something to be applauded.

READ MORE: Donald Trump slashes auto tariffs to 10% for UK in major victory for car manufacturers

"Nevertheless, a 10 per cent tariff is still worse than what was in place before, plus the quota on the number of cars allowed annually before the original tariff is reimposed limits the growth of UK carmakers.

"The Government must endeavour to raise the limit further if it wishes the industry to prosper."

Speaking at the Jaguar Land Rover factory in Solihull this afternoon, Sir Keir Starmer said the quota of 100,000 cars under the 10 per cent tariff was "not fixed", leaving the door open to further negotiation.

Mike Hawes, chief executive of the Society of Motor Manufacturers and Traders (SMMT), praised the announcement, saying the reduced tariffs were "great news for the industry".

He said: "The application of these tariffs was a severe and immediate threat to UK automotive exporters, so this deal will provide much-needed relief, allowing both the industry, and those that work in it, to approach the future more positively."

Jaguar Land Rover, which hosted Sir Keir Starmer at its Solihull factory, said the tariff deal could save consumers hundreds of thousands of pounds.

CEO Adrian Mardell noted: "The car industry is vital to the UK's economic prosperity, sustaining 250,000 jobs. We warmly welcome this deal which secures greater certainty for our sector and the communities it supports."

The Institute of the Motor Industry also said the deal would bring "much-needed certainty" for UK businesses, but failed to address the skills gap battering the UK, with more than 17,000 vacancies across the automotive sector.

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Meanwhile, Cara Haffey, leader of industry for industrials and services at PwC UK, noted that manufacturers would be even happier with the deal after the Bank of England cut interest rates to 4.25 per cent earlier today.

Dom Tribe, PwC UK automotive sector leader, hinted that manufacturers could make massive changes to production patterns following the tariff announcement.

He said: "If tariff rates are deemed low enough, it may mean that OEMs will not look to make drastic changes to their manufacturing footprint and supply chain networks but look at other cost avoidance or reduction measures which might be able to offset some, or all, of the price uplift."