The UK automotive industry is undergoing significant transformation, influenced by global policy changes and market dynamics. According to Mike Thompson, motoring expert and COO at Leasing Options, the recent inauguration of Donald Trump as US President could have far-reaching implications for the sector.
In his first week in office, President Trump reversed 78 Biden-era policies, including a 2021 executive order aimed at promoting electric vehicle (EV) adoption in the United States. Thompson highlights how these changes could affect UK drivers and the automotive market.
“If Trump goes ahead with tariffs on European car imports, it could push up the price of premium models like BMW, Audi, and Mercedes-Benz here in the UK,” Thompson explains. “These brands rely heavily on sales in the US market, so if tariffs increase their costs there, they’ll likely recover some of those losses by raising prices in other markets. That could leave UK drivers facing higher costs when buying outright.”
Thompson also notes the potential for changes in vehicle availability. “If manufacturers need to rework their supply chains or adjust how they allocate stock globally, there could be a shortage of certain models in the UK. For example, brands like BMW might prioritise sending electric models such as the i4 or iX to markets with fewer trade barriers, potentially limiting their availability here,” he says. “This is particularly concerning as the UK approaches its 2035 zero-emissions target. The Zero Emission Vehicle (ZEV) mandate requires manufacturers to sell an increasing percentage of EVs, but global disruptions could make it harder to meet these targets and secure the EVs needed to achieve ambitious goals.”
The divergence in EV policies between the UK and the US could also pose challenges. Thompson points out that “Trump’s decision to undo the US target of 50% electric vehicle sales by 2030 highlights the difference in approach between the UK and the US. While the UK has committed to a full ban on new petrol and diesel vehicles by 2035, alongside the ZEV mandate starting in 2024, the US has taken a more fragmented approach. This could cause delays in the global EV transition, but the UK’s firm stance provides a clearer roadmap.”
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