Bentley has warned that uncertainty over the UK-US trade agreement is severely damaging its business, with US-bound car sales effectively frozen. Customers are holding off purchases in anticipation of a promised tariff cut—from 25% to 10%—that still lacks a confirmed start date or implementation details.
The new tariff agreement, covering 100,000 UK car exports annually, was unveiled last week but remains unenforced. Bentley CEO Frank-Steffen Walliser called the delay “super-harming the business,” saying buyers are postponing decisions, waiting for clarity.
“The worst thing for a business is announcing a tariff cut without confirming when it begins,” Walliser said at an industry conference hosted by the Financial Times. “It stops customer movement completely.”
British carmakers exported about 102,000 vehicles to the US in 2024, but there is still no clarity on how the 100,000 reduced-tariff quota will be allocated among manufacturers.
Jaguar Land Rover (JLR), the UK’s largest automotive employer, echoed Bentley’s concerns. The company is seeking clarification on whether parts and various models qualify under the deal, especially with complex rules of origin. JLR CEO Adrian Mardell said the sudden imposition of the 25% tariff had an immediate financial impact. Though a new deal was announced, it remains in limbo, and the Defender, made in Slovakia, is still subject to full tariffs due to EU-manufacturing.
Despite the setbacks, JLR reported a strong financial year, with £2.5bn in profits—its best pre-tax performance in a decade. However, Mardell emphasized the need for swift clarity to prevent further disruption and protect future growth in the US market.
Ineos Automotive, which manufactures in France, continues to face a 27.5% tariff on US exports. CEO Lynn Calder criticized the EU’s lack of progress on a similar trade agreement, calling Europe “uncompetitive” by global standards.
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