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UK car production dropped 32.8% year-on-year in May 2025 to 49,810 units, hit by factory disruptions and new US tariffs. Excluding the pandemic-affected year of 2020, this marks the lowest May output since 1949. Exports to the UK’s two largest markets fell sharply, with shipments to the EU down 22.5% and to the US plummeting 55.4%. The decline follows President Donald Trump’s decision in March to impose a 25% tariff on imported automobiles and parts, disrupting global supply chains and driving up costs. The move has led some automakers to consider relocating production to the US. However, a recent trade deal between the UK and the US, reaffirmed at the G7 summit in Canada earlier this month, offered a glimmer of relief. Under the agreement, up to 100,000 UK-made vehicles can enter the US each year at a reduced 10% tariff—lower than the standard 25% rate applied to other countries.