As the UK and US edge closer to a trade agreement that could shield British car and steel exports from the full force of Donald Trump’s proposed tariffs, the impact on global vehicle supply chains is already being felt.
The finalisation of the tariffs was one of the subjects under discussion between Keir Starmer and Trump during the President’s recent visit to Scotland, where Trump spent the majority of his time on the golf course.
Hence, the impact of US tariffs on the UK automotive industry are likely to be considerable. This is the opinion of motoring expert and CEO Mike Fazal, who joined the firm Leasing.com during 2024 as Chief Operating Officer to lead the business operations and to support the CEO to deliver the group’s growth objectives.
Fazal has explained to Digital Journal that recent events have demonstrated a fault line running through the UK sector: “Jaguar Land Rover has resumed shipments to the US after a temporary pause, but the episode has underscored just how vulnerable even the largest manufacturers are to sudden trade shifts.”
This may trigger some companies to move away from the U.S.: “As brands rethink their reliance on the American market, the UK is emerging as a strong contender for redirected vehicle stock – particularly in the leasing sector.”
Why is this the case? Fazal explains: “Trump’s 25% tariff has only been in place for a few weeks, but it’s already changing how car makers think about where to send their vehicles. The US has become a more expensive and uncertain market for imported cars, especially for brands that rely heavily on selling there.”
Looping back to the recent events impacting Jaguar, Fazal finds: “We’ve already seen Jaguar Land Rover take the significant step of pausing shipments to the US earlier this month, which is a clear sign of how seriously manufacturers are taking this. If the tariff stays in place, manufacturers may start redirecting stock to other countries – and the UK is well placed to take advantage of that. More cars here could mean better availability and more competitive lease deals for British drivers.”
This is triggering responses from other leading car companies: “European manufacturers like BMW, Mercedes-Benz, Volkswagen and Volvo have all built strong positions in the US market over the years. But now, with these tariffs in play, they may look for more reliable and cost-effective places to sell. The UK is an obvious choice: we’ve got a strong driving culture, growing demand for EVs and premium cars and drivers who are open to exploring new models and tech.”
The impact on sales vs leasing may well be different, as Fazal draws out: “For the leasing market, more supply is always a good thing. It means more choice, better prices and quicker delivery times – whether you’re after a family SUV, an electric car or a high-performance model. If the UK starts receiving more of the stock that would have gone to the US, that’s a big win for drivers here.”
Even with a potential trade deal offering tariff relief for UK exports, Fazal notes that the global landscape has already shifted.
“That said, [changes to the tariff add] a bit of uncertainty. If it’s rolled back, car makers might stick to their original US plans. But even so, the last few weeks have been a wake-up call. Manufacturers now know they can’t afford to depend too heavily on one market. Many will still want to diversify where they sell – and that could continue to benefit the UK in the longer term.”
Fazal concludes with: “At Leasing.com, we’re always looking ahead. Tariffs and trade deals might feel distant, but they have a real impact on the cars people drive and how much they pay for them. Our job is to stay on top of these global changes so our customers can take advantage of them – not get caught out.”
