Trump tariffs and UK-US trade deal threaten future of Bentley as drivers 'won't buy cars' anymore

Frank-Steffen Walliser, CEO of Bentley, told the Financial Times' Future of the Car summit that unanswered questions about the deal have made it "super hard" for the company to operate. The agreement, struck last week, has left potential buyers hesitant to commit to new purchases.

"It means all your customers say 'I won't buy a car now', especially our customers, our clients don't need a car at the moment," Walliser said.

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He added that the situation has effectively frozen business activity, stating: "It is super hard on the business at the moment, nobody's moving."

The trade deal aims to reduce potential tariffs on UK car exports to the US from 27.5 per cent to 10 per cent for the first 100,000 vehicles shipped. This cap will cover almost all of the 101,870 vehicles exported to the US last year, according to the Society of Motor Manufacturers and Traders.

However, the details of how this quota will be allocated among British manufacturers remain unclear. Walliser expressed frustration about the lack of clarity, saying the announcement of lower tariffs without implementation details was "the worst thing that can happen" when running a business.

The agreement comes after US President Donald Trump introduced sweeping global tariffs last month, leaving British firms at risk of paying more to export vehicles to America.

Walliser highlighted the uncertainty about how the 100,000 vehicle quota would be distributed among British manufacturers.

"Is the 100,000 for Bentley? I can live with that," he said. "But I assume our colleagues from JLR would also like to have a chunk".

The Bentley chief executive confirmed the company is "working hard with the Government, having direct conversations with the Government to find out how it will be operating".

However, he noted that even Government officials appear uncertain about implementation."Don't get me wrong, I'm not complaining [about Britain striking the first trade deal], but it is not operational," Walliser added.

The lack of clarity has created a challenging business environment for the luxury car brand as customers wait for certainty before making purchases.

The US market is crucial for Britain's luxury car manufacturers, with approximately one in six exported cars heading to America. It represents the largest market for high-end brands such as JLR, Bentley and McLaren. Walliser indicated that Bentley is monitoring competitors' responses to the tariff changes before deciding whether to raise prices.

Aston Martin had previously announced it would wait until mid to late May to implement price increases on its vehicles. Ferrari, which exports from Italy and thus faces different trade conditions, has already announced price increases of up to 10 per cent on some models.

According to the trade agreement text released last Thursday, the US and UK are set to continue negotiations on tariff reductions for "sectors of importance".

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However, many operational details still need to be finalised, creating uncertainty across the luxury automotive sector. For Bentley, the immediate concern is restoring customer confidence to prevent further sales delays.

Until these questions are answered, US customers appear likely to continue delaying their Bentley purchases, the car boss warned.