Aston Martin and TVR among firms at risk from new US automotive import tax

WELSH exporters have been dealt a major blow after former US President Donald Trump announced sweeping new tariffs on UK goods, including a 25% tariff on all automotive imports into the United States, sparking concern across Wales’ high-value manufacturing sector.

The announcement, made on April 2, also includes a 10% baseline tariff on all UK imports into the US, taking effect from April 5. These new charges come on top of previously announced 25% tariffs on steel, aluminium and automotive parts, with only a limited number of product exemptions such as pharmaceuticals and semiconductors.

The United States is Wales’ second largest export market, accounting for 13.5% of total goods exports. In 2024, Welsh goods trade with the US was valued at £6.4bn, with £2.2bn in exports and £4.2bn in imports. Of the 3,188 Welsh firms that exported goods globally in 2024, over a third (33.4%) exported to the US.

While Welsh exports span sectors from steel to technology, some of the hardest-hit businesses could be those involved in high-end automotive manufacturing—a sector that Wales has been nurturing in recent years.

Luxury carmakers in the firing line

Aston Martin’s factory in St Athan, Vale of Glamorgan, opened in 2020 to manufacture the DBX luxury SUV, has been a flagship project for Welsh industry. With many of these vehicles aimed at wealthy international buyers, particularly in the US, a 25% tariff could significantly hinder their competitiveness abroad.

Similarly, TVR’s long-awaited revival, with plans to produce its new Griffith sports car in Ebbw Vale, is expected to rely heavily on overseas sales, including to American car enthusiasts. Any additional import taxes on these cars could make them prohibitively expensive in the US market—potentially delaying investment and job creation in the Welsh factory.

Both brands represent the premium end of British automotive design and were supported by the Welsh Government as part of a strategy to attract advanced manufacturing jobs.

Welsh Government: “Far-reaching impacts”

Reacting to the announcement, Rebecca Evans MS, Cabinet Secretary for Economy, Energy and Planning, expressed “deep concern” about the likely effects of the tariffs.

“Whilst it is a small relief to see that the tariffs applied to UK imports are lower than those imposed on the EU, a 10% tariff represents a significant rise for most products,” she said.

“These changes will affect almost all of our businesses that export to the US.”

Evans said the Welsh Government remains in close contact with Westminster and is working with business and industry leaders to assess the fallout. Support will be available through existing business support programmes, and regular updates will be provided as the full impact becomes clearer.

Could there be an upside for UK consumers?

Amid the gloom, some experts suggest UK consumers might see short-term benefits, especially in the used car market.

Aidan Rushby, CEO of car finance company Carmoola, said the tariffs could create a glut of nearly-new and unsold stock that ends up staying in the UK.

“If British manufacturers struggle to sell into the US, we could see more cars redirected to the domestic market, which may mean better deals for UK consumers,” he said.

“An economic wobble caused by global trade tensions could also push used car prices lower as demand softens. That’s good news for buyers, but for current car owners, it could mean faster depreciation.”

Rushby added that it’s more important than ever for buyers to stay informed and work with responsible lenders.

Renewable energy sector raises alarm

It’s not just manufacturing that could suffer. Jane Cooper, Deputy Chief Executive of RenewableUK, warned that the broader fallout from tariffs and trade disputes could stifle green innovation and investment.

“These tariffs, combined with the US Government’s recent moves to halt offshore wind development, will mean UK and American companies will miss out on opportunities to trade, invest and collaborate in clean technology,” she said.

While trade in renewable goods between the UK and US is limited, Cooper said many UK-based manufacturers operate across Europe, and the disruption to supply chains could be significant.

Business leaders urged to prepare

The Institute of Directors (IoD) North Wales hosted a key event last week in Bangor, where industry experts briefed Welsh businesses on how best to navigate the evolving trade landscape.

David Roberts, Chair of North Wales IoD, said: “From global trade concerns such as Trump’s tariffs, to local investment opportunities in Flintshire and Wrexham, it’s vital that Welsh firms stay informed and resilient.”

Despite reassurances, there are no current plans for the UK to retaliate. The UK Government is seeking a negotiated solution with the US and has opened a consultation to assess the impact on British businesses.

For now, Welsh exporters—and especially those in automotive and high-tech sectors—face a turbulent road ahead.