What the 2025 US Tariffs Mean for the UK Fleet Industry
What Donald Trump's 2025 US Tariffs Mean for the UK Fleet Industry
As of April 2025, the President of the United States will impose a 25% tariff on imported vehicles — a move that could significantly reshape the landscape for UK car manufacturers and the broader fleet industry. With the US representing the UK’s second-largest car export market, these new trade barriers could send ripple effects through vehicle pricing, availability, and production.
Update 2nd April - UK tariffs were set at 10% with the EU at 10%
Why the US Tariffs Matter
In 2023 alone the last year where full data is available, the UK exported over £7.6 billion worth of vehicles to the US. Iconic British brands such as Jaguar Land Rover, Bentley, Aston Martin, and Rolls-Royce rely heavily on American demand. With a 25% tariff applied, the price of a new Range Rover in the US could increase by as much as $27,000, a hike that risks pricing UK-built vehicles out of the market even considering the lack of price sensitivity around these types of vehicles, even 10% is over $10,000.
While the policy is aimed at protecting US manufacturing, its implications for the UK automotive sector, already under pressure from evolving emissions regulations, the transition to electric vehicles and high UK commercial energy costs, are considerable.
Implications for UK Fleet Operators
1. Reduced Availability of Premium Fleet Vehicles
Luxury and executive vehicles from brands such as Land Rover and Bentley may see production volumes scaled back if exports to the US decline. That could tighten domestic supply and increase lead times especially for high-spec models often used by senior leadership or executive fleets.
2. Potential Price Increases Across the Board
Even for UK fleets not directly importing from the US, reduced economies of scale could increase per-unit costs for manufacturers. That pressure may be passed on to fleet buyers, particularly those sourcing vehicles from premium brands.
3. Impact on Resale Values
With US demand dampened, certain models may see shifts in residual value forecasts, particularly where export-driven desirability currently bolsters used car prices. Fleet managers may need to reassess whole-life cost models, especially for premium vehicles on contract hire or lease arrangements.
Industry & Policy Response
The Society of Motor Manufacturers and Traders (SMMT) and major automotive exporters have called for urgent talks between UK and US trade officials. However, the geopolitical climate makes a quick resolution uncertain.
In the meantime, fleet operators may benefit from:
- Reassessing vehicle acquisition strategies for 2025 onwards
- Diversifying manufacturers or models to reduce dependency on impacted brands
- Monitoring manufacturer responses, including potential localisation or pricing changes
A Wider Economic Concern
Beyond the fleet industry, the tariffs pose a broader economic risk. The Office for Budget Responsibility (OBR) has already noted that sustained trade friction with the US could dampen GDP growth and limit fiscal flexibility for the UK Government. For an industry employing over 800,000 people directly and indirectly in the UK, the stakes are high.
Conclusion
The 2025 US tariffs may not hit UK fleet operators immediately but the knock-on effects will be felt. Higher prices, longer wait times, and reduced choice could all challenge fleet efficiency and procurement planning. Now is the time for fleet decision-makers to get proactive: monitor developments, engage with suppliers, and build agility into your fleet strategy.
LetsTalkFleet can provide independent impartial advice on all aspects of Fleet Policy Development for your business so please get in touch with any specific enquiries you have, we are available on 0330 056 3335 , via email contact@letstalkfleet.co.uk or via Whatsapp.