LONDON: Britain’s vehicle production declined from a year ago for the fifth successive month in May, industry data showed on Friday, as factory disruptions and US tariffs weighed on automakers.
UK car and commercial vehicle production dropped 32.8 percent from a year ago to 49,810 units last month, marking the worst percentage drop in May output since 1949, excluding the COVID-19 pandemic-hit 2020, according to data from the Society of Motor Manufacturers and Traders.
Exports to the UK’s two biggest markets, the EU and the US, declined by 22.5 percent and 55.4 percent respectively, SMMT said.
US President Donald Trump’s 25 percent tariffs on imported automobiles and parts, imposed in March, have disrupted global supply chains, added hundreds of millions of dollars in costs for manufacturers, prompted export suspensions and pushed several automakers, especially in Europe, to consider shifting production to the US to avoid the duties.
British manufacturing also contracted in May, as output, orders and employment declined.
Still, SMMT chief Mike Hawes said the UK’s trade deals, especially with the US, and a more positive relationship with the EU, provided some optimism.
The US and UK reaffirmed a previously agreed trade deal during the G7 summit in Canada earlier this month, under which up to 100,000 UK-made cars a year can enter the US at a 10 percent tariff, lower than the 25 percent rates other countries face.
In May, Britain reached a trade deal with India to lower tariffs and set quotas on auto imports, while also moving closer to the European Union on cooperation in defense, energy and agriculture.
Car production, excluding commercial vehicles, dropped by 31.5 percent in May, largely driven by model changeovers, restructuring and the impact of US tariffs, SMMT said.
UK made fewer vehicles for the fifth straight month in May as Trump tariffs bite
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UK made fewer vehicles for the fifth straight month in May as Trump tariffs bite
- UK production dropped 32.8 percent from a year ago, marking the worst percentage drop in May output since 1949
- US President Trump’s 25 percent tariffs on imported automobiles and parts have disrupted global supply chains
Prabowo, Trump expected to sign Indonesia-US tariff deal in January 2026
- Deal will mean US tariffs on Indonesian products are cut from a threatened 32 percent to 19 percent
- Jakarta committed to scrap tariffs on more than 99 percent of US goods
JAKARTA: Indonesia expects to sign a tariff deal with the US in early 2026 after reaching an agreement on “all substantive issues,” Jakarta's chief negotiator said on Tuesday.
Indonesia’s Coordinating Minister for Economic Affairs Airlangga Hartarto met with US trade representative Jamieson Greer in Washington this week to finalize an Indonesia-US trade deal, following a series of discussions that took place after the two countries agreed on a framework for negotiations in July.
“All substantive issues laid out in the Agreement on Reciprocal Trade have been agreed upon by the two sides, including both the main and technical issues,” Hartarto said in an online briefing.
Officials from both countries are now working to set up a meeting between Indonesian President Prabowo Subianto and US President Donald Trump.
It will take place after Indonesian and US technical teams meet in the second week of January for a legal scrubbing, or a final clean-up of an agreement text.
“We are expecting that the upcoming technical process will wrap up in time as scheduled, so that at the end of January 2026 President Prabowo and President Trump can sign the Agreement on Reciprocal Trade,” Hartarto said.
Indonesian trade negotiators have been in “intensive” talks with their Washington counterparts since Trump threatened to levy a 32 percent duty on Indonesian exports.
Under the July framework, US tariffs on Indonesian imports were lowered to 19 percent, with Jakarta committing to measures to balance trade with Washington, including removing tariffs on more than 99 percent of American imports and scrapping all non-tariff barriers facing American companies.
Jakarta also pledged to import $15 billion worth of energy products and $4.5 billion worth of agricultural products such as soybeans, wheat and cotton, from the US.
“Indonesia will also get tariff exemptions on top Indonesian goods, such as palm oil, coffee, cocoa,” Hartarto said.
“This is certainly good news, especially for Indonesian industries directly impacted by the tariff policy, especially labor-intensive sectors that employ around 5 million workers.”
In the past decade, Indonesia has consistently posted trade surpluses with the US, its second-largest export market after China.
From January to October, data from the Indonesian trade ministry showed two-way trade valued at nearly $36.2 billion, with Jakarta posting a $14.9 billion surplus.
