Drivers could soon pay more for a new car as manufacturers react to Donald Trump’s import tariff (Image: Getty)
An automotive expert has warned that the following inauguration.
Within a week of returning to the White House, President Trump has reversed nearly 80 policies made by his predecessor , with plans to put into the country.
Mike Thompson, COO of , suggested that such tariffs could see the from Europe increase in price to help manufacturers continue to turn profits.
He explained: “If Trump goes ahead with tariffs on , it could push up the price of premium models like , , and Mercedes-Benz here in the UK.
“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.”
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President Trump has previously proposed a tariff on cars imported into America (Image: Getty)
America is one of the world’s largest producers of passenger cars, with around 1.75 million being built in the country during 2023. However, the figure is declining as more manufacturers choose to set up factories in countries with lower labour costs.
During his campaign rally, President Trump highlighted that he wanted to see more car companies return to America, warning that he would impose a 25 percent tariff on models built in Mexico and Canada.
Much like the ‘s tariff on electric cars made in China, this would likely deter new car buyers from choosing imported models, which Leasing Options fears will see the cost of models rise elsewhere in the world, including in the UK.
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The new President also dropped an order planning to ban new petrol and diesel cars by 2035 (Image: Getty)
Mike also highlighted that President Trump’s plans could also cause changes to the supply of new vehicles, with Europe getting fewer petrol models and more EVs.
He added: “We might also see shifts in 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. This is particularly concerning as the UK approaches its 2035 zero-emissions target.”
One previous policy that President Trump has already reversed is the executive order to encourage more motorists to make the switch from a petrol or diesel-powered car to an electric vehicle.
Introduced in 2021, this order included plans for electric vehicles to have a 50 percent share of the market by 2030 and a total ban on new petrol and diesel models by 2035.
The UK currently has an even stricter mandate, which will require new petrol and diesel cars to be taken off sale in 2030, with owners only able to buy models with a combustion engine used.