European and UK trade groups call for solution to avert US auto tariffs

Trade groups representing the auto sector in the European Union and the U.K. Thursday called on leaders to find a resolution to the planned U.S. tariffs on auto imports.

President Trump’s 25% tariffs on all vehicles imported to the U.S. will hurt global automakers as well as U.S. domestic manufacturing, the European Automobile Manufacturers’ Association said Thursday.

Tariffs won’t just impact imports into the U.S., a penalty that American consumers are likely to pay, but the duties on automotive parts will also hurt automakers producing cars in the U.S. for export markets, said the trade group, which is known as ACEA.

“European automakers have been investing in the U.S. for decades, creating jobs, fostering economic growth in local communities, and generating massive tax revenue for the U.S. government," ACEA Director General Sigrid de Vries said.

“We urge President Trump to consider the negative impact of tariffs."

ACEA said that European manufacturers export between 50% and 60% of the vehicles they make in the U.S., making a substantial positive contribution to the U.S. trade balance.

The trade group urged the EU and U.S. to engage in dialogue and find a resolution to avert tariffs and the consequences of a trade war, as the news comes at a watershed moment for the industry’s transformation and as fierce international competition mounts.

In the U.K., the industry body Society of Motor Manufacturers and Traders said President Trump’s announcement was disappointing, but not surprising.

Rather than imposing additional tariffs, the SMMT said leaders should be exploring ways to create opportunities for both British and American manufacturers as part of a mutually beneficial relationship, benefiting consumers and creating jobs and growth across the Atlantic.

“The U.K. and U.S. auto industries have a long-standing and productive relationship, with U.S. consumers enjoying vehicles built in Britain by some iconic brands, while thousands of U.K. motorists buy cars made in America," SMMT Chief Executive Mike Hawes said.

“The industry urges both sides to come together immediately and strike a deal that works for all."

The U.S. is Britain’s second largest car export market after the EU, with more than 101,000 units shipped in 2024, representing 16.9% of cars exported, according to the SMMT.

U.K. passenger car exports to the U.S. were worth 7.6 billion pounds ($9.8 billion) in 2024, while U.S. passenger car imports to the U.K. reached 18,000 units in 2024.