Car manufacturers in Britain are calling for an end to tariff-related struggles, expressing mounting worries over the industry's future.

Despite the recent trade agreement, Jaguar Land Rover and Bentley continue to operate under the earlier 25% tariff structure.

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2025 May 16 . 6:00 AM

2 min read

Major British automobile brands Jaguar Land Rover and Bentley have declared that they are still... — Major British automobile brands Jaguar Land Rover and Bentley have declared that they are still subject to a 25% tariff, despite a recent trade agreement, remaining under the old tax regulation.

Car Manufacturers in UK Fighting for Clarity on US Tariffs

The uncertainty surrounding Britain's auto industry persists as automakers cry out for clarity regarding the reduction of tariffs on exports to the U.S.

Jaguar Land Rover (JLR) and Bentley are still bearing the brunt of the 25% tariff regime despite the recent trade agreement with President Donald Trump[2]. Meanwhile, employees at the largest car plant in Sunderland, operated by Japanese giant Nissan, are left in limbo following Nissan's announcement of closing seven factories worldwide[1].

Executives from JLR and Bentley have stressed the importance of knowing when the reduced tariffs, which will dip to 10%, will materialize. JLR's CEO Adrian Mardell stated that despite welcoming the agreement, the company is holding out for confirmation on the effective date[3]. He also underlined the fact that even after the reduction, the tariffs would still be four times higher than the original level[3].

The unpredictability of the tariffs has already impacted JLR, leading to a temporary pause on exports to the U.S. However, production has since resumed. Mardell did not rule out the possibility of building factories in the U.S. in the future to avoid the tariffs that are currently in place[3].

Although the 100,000 tariff-free quota for UK car exports to the U.S. under the deal is intended to benefit the industry, Frank-Steffen Walliser, CEO of Bentley, questioned how it will be allocated. Just over 100,000 cars were exported to the U.S. from the UK last year[4]. He mentioned that Bentley was in conversation with the government to better understand the terms of the deal[4].

Nissan, on the other hand, recently announced plans to cut 11,000 jobs and shut seven factories worldwide. Although the company has not specified whether the Sunderland site will be affected, a Downing Street spokesperson expressed concerns for the Sunderland employees[1].

In the attempt to navigate the uncertain future, executives from companies like JLR and Bentley are seeking clarity on when the reduced tariffs for exports to the U.S., which will dip to 10%, will be implemented.
The CEO of JLR, Adrian Mardell, has stated that even after the tariff reduction, the imposed tariffs would still be four times higher than the original level, signifying a significant challenge for the industry.
The unpredictability surrounding tariffs has caused JLR to temporarily halt exports to the U.S., but production has since resumed. Mardell has not ruled out the possibility of building factories in the U.S. to avoid current tariffs.
Bentley's CEO, Frank-Steffen Walliser, has expressed concerns about the allocation of the 100,000 tariff-free quota for UK car exports to the U.S., as it remains unclear how this benefit will be distributed within the industry.