How Trump’s Tariffs Could Impact UK Used Car Prices

2nd Apr 2025

Here at OurCar, we pride ourselves on keeping our finger on the pulse of the used car market, ensuring you get the best deals and the latest insights. With Donald Trump’s new 25% tariffs on imported cars and auto parts kicking in across the pond as of April 3, 2025, you might be wondering: what does this mean for us here in the UK? Specifically, how could it affect the prices of used cars on our forecourt?

What’s Happening with the Tariffs?

The U.S. has slapped a 25% tariff on all vehicles and parts not made on American soil, including those we export from the UK. Last year, we sent around 100,000 British-built cars—worth £7.6-8 billion—to the U.S., making it our second-biggest car export market after the EU. Big names like Jaguar Land Rover (JLR), Rolls-Royce, and Bentley rely on American buyers, and now they’re facing a hefty price hike to keep selling there. Industry experts reckon this could slash UK car exports to the U.S. by anywhere from 7% to a whopping 75%. That’s a serious shake-up for our car makers.

Why Does This Matter to Used Car Prices?

You might think, “The U.S. is miles away—how does this hit my wallet when I’m browsing at OurCar?” Fair question! It’s all about supply and demand, and here’s how it could play out:

Fewer New Cars, More Demand for Used Ones
If manufacturers like JLR lose U.S. sales, they might cut back production. Fewer new cars rolling off the lines means fewer hitting UK showrooms too. When new car prices creep up (and they could, with supply tighter), more of you might turn to the used market instead. Higher demand for used cars—without a big increase in supply—could push prices up. That’s basic economics, and it’s something we’re keeping a close eye on here at OurCar.
Knock-On Effects from Global Trade
These tariffs might spark a tit-for-tat trade spat. If the EU or others retaliate against the U.S., it could mess with the global car trade that UK manufacturers depend on. Higher production costs could filter down to new car prices at home, nudging more buyers our way and, you guessed it, lifting used car values.
A Shift in Buyer Habits
Across the Atlantic, new car prices might jump by thousands, driving American buyers to their used car lots. While our market here is separate, a global trend of people opting for used over new could ripple over. Plus, if UK folks hold off buying new cars due to price worries, demand for our stock—like that tidy 2022 JLR or reliable 2020 hatchback—might climb, nudging prices northward.
Luxury Cars: A Mixed Bag
High-end UK brands like Rolls-Royce might see unsold U.S. stock redirected here. That could mean a few more luxury used cars on the market, possibly softening prices at the top end. But don’t bank on it—most signs point to broader price rises across the board.

What Does This Mean for You?

Right now, it’s early days—April 2, 2025, to be exact—and the full effects are still unfolding. If new car supply tightens over the next few months, we could see used car prices at OurCar and beyond start to rise, perhaps by late spring or summer. How much? Hard to pin down, but even a modest uptick could add a few hundred quid to the average used car’s tag.

On the flip side, we’re here to help you navigate it. If you’re thinking of buying, now might be a smart time to snap up a bargain before any price hikes hit. Selling or part-exchanging? You could get a bit more for your motor if demand spikes. Either way, our team’s ready to give you the best advice and deals, tariffs or no tariffs.

OurCar’s Take

Trump’s tariffs are a curveball for the UK car industry, and while we’re not in the driver’s seat on trade policy, we’re committed to keeping you informed and ahead of the game. The road ahead might see used car prices climb, but at OurCar, we’ll keep scouring the market to bring you quality cars at fair prices.

References:

Society of Motor Manufacturers and Traders (SMMT), 2024 Annual Report, published January 2025.
Auto Express, “Trump Tariffs: Early Impact Assessment,” March 2025 issue.
U.S. International Trade Commission, “Economic Effects of Proposed Tariffs,” December 2024 report.