The UK automotive industry is bracing for a period of significant change, with motoring experts warning of potential price hikes and disruptions to supply chains in the wake of Donald Trump’s return to the U.S. presidency.
Since his inauguration on Monday, Trump has reversed 78 policies from the Biden administration, including a 2021 executive order aimed at boosting electric vehicle (EV) adoption. This shift could have far-reaching consequences for UK drivers and the wider car market, according to Mike Thompson, Chief Operating Officer at Leasing Options.
One of the key concerns is the possibility of new tariffs on European car imports, a move that could push up prices for premium models such as BMW, Audi, and Mercedes-Benz in the UK. “These brands rely heavily on sales in the U.S. market, so if tariffs increase their costs there, they’ll likely recoup some of those losses by raising prices in other markets,” Thompson explained. “That means UK drivers could face higher costs when buying premium vehicles outright.”
Thompson also warned of potential shortages in certain models as manufacturers adjust their global supply chains in response to shifting trade policies. With the U.S. potentially prioritising its own market, popular European models, including electric vehicles like BMW’s i4 or iX, might be less available in the UK. This could pose a challenge for the UK’s ambitious 2035 zero-emissions target, which requires manufacturers to sell an increasing percentage of electric vehicles.
“The global disruptions caused by Trump’s actions could make it harder for the UK to secure the EVs it needs to meet its zero-emissions goals,” Thompson said. “At the same time, the UK’s commitment to a full ban on petrol and diesel vehicles by 2035, along with the Zero Emission Vehicle (ZEV) mandate starting in 2024, offers a clearer path forward compared to the more fragmented approach being taken in the U.S.”
In light of these uncertainties, Thompson highlighted the growing importance of leasing as a practical solution for both individual drivers and businesses. Electric vehicle leasing, in particular, offers access to cleaner technology without the hefty upfront costs associated with purchasing a new car.
For businesses, the shifting global market could introduce new complexities in fleet management, making it more difficult to forecast running costs and operational needs. “Monitoring overseas trends and policy changes is crucial for staying ahead of these impacts,” Thompson said. “At Leasing Options, we’re focused on helping our customers navigate these challenges through flexible leasing contracts and expert guidance.”
As the UK automotive sector faces these uncertain times, the key to success will be adaptability. By staying informed and responsive to international developments, UK drivers and businesses can better manage the changes ahead, ensuring that they make confident decisions in an evolving landscape.
