According to Reuters, industry data released on June 27 showed that the UK’sAutomotive productionIt continued to decline in May this year, marking the fifth consecutive month of year-on-year decline, due to factory shutdowns and the impact of US tariffs on automakers.
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British Association of Carmakers and Traders
According to the British Motor Manufacturers and Traders Association (SMMT), last month, the number of passenger cars and commercial vehicles in the UK increasedyieldIt fell 32.8% year-on-year to 49,810 units, the largest monthly decline in production in May since 1949 (excluding 2020, which was hit by the coronavirus pandemic). From January to May this year, UK car production fell nearly 13% year-on-year to 348,226 units, the lowest level in the same period since 1953.
Among them, UK passenger car production fell 31.5% year-on-year to 47,723 units in May, mainly due to the impact of model updates, corporate restructuring and US tariffs; Commercial vehicle production also fell sharply, by 53.6% to 2,087 units, as the closure of a commercial vehicle plant in the UK continued to affect production levels.
According to SMMT data, exports of British cars to its two main markets (EU and US) fell by 22.5% and 55.4% respectively in May. U.S. President Donald Trump’s 25% tariffs on cars and parts imported into the U.S. market in March disrupted global supply chains, cost manufacturers hundreds of millions of dollars more, led to a suspension of exports, and prompted some automakers, especially those in Europe, to consider moving production to the U.S. to circumvent these tariffs. However, SMMT CEO Mike Hawes said that the UK’s trade deals, especially with the US, and a more positive relationship with the EU have brought some optimism.
Earlier this month, at the G7 summit in Canada, the United States and Britain reaffirmed a previously reached trade deal. Under the agreement, up to 100,000 British-made cars can enter the US market annually with a 10% tariff, which is lower than the 25% tariff rate faced by other countries.
In May, the UK reached a trade agreement with India aimed at reducing tariffs and setting car import quotas, while further cooperation with the EU in the fields of defense, energy and agriculture has also developed.
