Gross sales of British-made vehicles to the US rose in July following the introduction of the UK-US tariff deal.
The 6.8% rise follows three months in a row of falling gross sales, in accordance with knowledge from the Society of Motor Producers and Merchants (SMMT).
US President Donald Trump initially proposed a 25% import tax on UK vehicles in April, which despatched shockwaves via the business, however this was then lowered to 10% and got here into drive on the finish of June.
The SMMT stated July’s figures “illustrate the impression of this deal”, although it added that UK automotive manufacturing was usually struggling.
“The US stays the biggest single nationwide marketplace for British-built vehicles, underscoring the significance of the UK-US commerce deal,” the SMMT stated.
The tariff reduce from 25% to 10% solely applies to the primary 100,000 vehicles despatched throughout the Atlantic, which is in regards to the variety of vehicles the UK exported to the US final 12 months.
Any further automotive imports above that quantity can be taxed at 25%, in accordance with the settlement.
The US represented 18.1% of all UK automotive exports for July, whereas the European Union is a a lot larger marketplace for automotive makers, totalling 45.6% of exports.
Colleen McHugh, chief funding officer at Wealthify, stated the US was “an essential marketplace for British-built vehicles”.
“Specifically, it’s a key marketplace for premium manufacturers like Jaguar Land Rover (JLR).”
JLR paused shipments to the US in April after the preliminary increased tariffs had been introduced, earlier than resuming them a month later.
Total, UK automotive manufacturing rose rose for the second consecutive month in July, as a consequence of rises in each home gross sales and exports.
Nevertheless, output for the 12 months so far is down 11.7%. Final month, automotive making within the UK fell to its lowest level since 1953.
Specialists say the droop has been brought on by a combination of higher UK labour costs, increased competition from overseas, and Brexit.
Commenting on July’s numbers, Mike Hawes, SMMT chief government, stated: “It stays a turbulent time for automotive manufacturing, with client confidence weak, commerce flows risky and big funding in new applied sciences underway each right here and overseas.
“Given this backdrop, one other month of rising automotive output is sweet information.”
