Car exports from the UK to the US fell by more than half in May, largely due to President Donald Trump's tariffs, data shows, but are expected to recover thanks to the trade agreement between the US and the UK.

The British automotive trade organization SMMT said new car exports fell by more than 55% last month compared to May 2024.

Trump's tariffs on the automotive sector, imposed in April, "immediately reduced demand, forcing many manufacturers to halt deliveries," the statement said.

"However, with the trade agreement due to come into force before the end of June, we hope this will be a short-term restriction."

The agreement between London and Washington will reduce tariffs on UK car exports from 27.5% to 10%, with a limit of 100,000 cars per year.

Almost 80% of cars manufactured in the United Kingdom last year were exported, mainly to the European Union.

The UK car industry is dominated by foreign brands, including Japanese giant Nissan and India's Jaguar Land Rover.

At the same time, the US is a key market for British-made luxury models such as Bentley and Rolls-Royce, which are owned by German companies. |BGNES