EU’s car exports to UK are worth THREE TIMES UK’s exports to EU

Regardless of what President Trump does today, latest EU car export data is worrying for Starmer

Montage © Facts4EU.Org 2025

A Facts4EU think-tank snapshot of cars, tariffs - and the EU, the US, and the UK

According to US President Donald Trump, today is America’s ‘Liberation Day’. To liberate US industry, President Trump is said to be going to announce an extra 25% tariff on large parts of the EU’s export business with the US – and notably on EU cars.

Facts4EU has analysed the latest data on the EU's global trade in cars, released in Brussels yesterday, from an American and a UK perspective. This shows a very large surplus in the EU's favour in its trade with both countries.

The fundamental facts to know today, regarding cars, tariffs - and the EU, the US, and the UK

The EU’s car trade

The EU sells the US over 4.5 times as much by value as the US sells to the EU
The EU sells the UK over 3 times as much by value as the UK sells to the EU
The UK is the second-largest market in the world for the EU’s cars, just after the US
The EU sells the UK more than twice as much by value as it sells to China

Brexit Facts4EU.Org Summary

The EU’s car trade with the EU in 2024

1. The US and the EU

© Brexit Facts4EU.Org 2025 - click to enlarge
[Source: EU Commission’s official statistics agency, data released yesterday, 01 Apr 2025.]

2. The UK and the EU

© Brexit Facts4EU.Org 2025 - click to enlarge
[Source: EU Commission’s official statistics agency, data released yesterday, 01 Apr 2025.]

For the EU, the UK’s car market is the second-most important in the World

As a result of years of British media output that has been predominantly anti-Brexit and which favours the overturning of the EU Referendum result and rejoining the EU, it is not widely appreciated by the British public just how important the United Kingdom is to the EU from the perspective of trade, to say nothing of the UK’s importance to the EU in a great many other ways.

One example of this is the car industry and the British consumer market for cars. On the EU’s doorstep is what some EU commentators, (and many EU politicians in private), have referred to as its ‘Treasure Island’. It was so-named because of it being a lucrative and readily-accessible source of relatively wealthy consumers for the products of the EU’s industrial machine. Typical in this characterisation is the car market.

Brexit Facts4EU.Org Summary

The EU’s top 10 markets in the World for its cars

© Brexit Facts4EU.Org 2025 - click to enlarge
[Source: EU Commission’s official statistics agency, data released yesterday, 01 Apr 2025.]

For the EU, the UK car market is the second most important in the World, second only to the USA.

Observations

The big question is surely why the UK continues to impose taxes and tariffs on imported cars from the US. These were inherited from the EU and – along with many other areas of life - remain unaddressed so many years after Brexit. Not only does the UK apply a 10% tariff, but the consumer must also pay 20% VAT, which Trump considers to be effectively a tariff.

Our final point on whatever is the outcome today concerns Sir Keir’s cosying up to the EU since he became Prime Minister. It is our view that this has not been helpful in the advancement of transatlantic relations. No.10’s insistence that it can play a bridging role between the US and the EU merely associates the UK with the EU, in the President’s mind.

The US is the UK’s largest trading partner by a long way. It’s at times like these that Sir Keir might reflect on this.

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[ Sources: EU Commission's official statistics agency, 01 Apr 2025 ] Politicians and journalists can contact us for details, as ever.

Brexit Facts4EU.Org, Wed 02 Apr 2025

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Reader Comments 5

1. LuxuryBalloon , Wednesday, April 02, 2025, 08:49:

Our exports of goods to the EU declined 10% if you compare 2023 to 2022. And it declined 15% if you compare 2024 to 2022. Yet the imports of goods remained the same if you compare 2023 and 2024 to 2022.
We need to raise tariffs on all goods from the EU and force Brits to buy American cars instead of EU cars.

2. Have You Wondered , Wednesday, April 02, 2025, 09:14:

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1. LB. Just done a Chat GPT on the subject : "In general, American midsize sedans and compact SUVs often align with European family-oriented models in terms of size, features, and pricing. However, European models are often more fuel-efficient and have more advanced tech due to stricter environmental regulations, while American models tend to focus more on interior space and comfort."
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Trump seems to have missed the point that American cars do not match the EU and UK specs.
.

3. NH , Wednesday, April 02, 2025, 10:12:

The EU's share of world trade has been declining for 20 years from approx. 19% to 14%. The UK's exports to the EU had stagnated a long time before Brexit and recent developments with both China and the USA are likely to reduce the EU's market size further. As an independent country we need to focus on where markets are growing and avoid trade wars.
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The problem is not just "tariffs" it's estimated that the EU uses "non tariff barriers" to restrict imports and these can add approximately 25% to import costs. The only way to evaluate trade is to examine the trade balance and see how it compares with other markets. If a nation has a deficit with one trade area are but competes successfully in other areas it's probably because of unfair trade practices.
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2. HYEW
Are you sure ?
Some of the largest sellers of cars in the USA are Toyota, Honda, Subaru, Stellantis, VW, Hyundrai, Renault Nissan, BMW, Mercedes etc. As far as I know they sell the same cars in the USA a they do in other parts of the world.

4. Have You Wondered , Wednesday, April 02, 2025, 12:58:

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3 NH. I was commenting about cars coming from and manufactured in the US to the UK and EU do not appear to have the same spec.
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5. NH , Wednesday, April 02, 2025, 13:42:

4. HYW
The largest USA car exporter, by value, in the USA is BMW and their largest export market is Germany and the UK is also a one of their largest export markets. If you have bought an X series BMW in the UK it will very likely have been manufactured in the USA. As far as I know the USA versions are the same specifications as the UK version but what is not the same is the price. In the USA an X5 starts at $67,000 in the UK it starts at £72,000 ($93,600).
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After we left the EU the UK had the right to remove the 10% tariff on cars but they didn't. Instead of sending it to the EU, as before, the Government kept it for themselves. So unfortunately people don't see one of the benefits of Brexit. The UK also applies VAT to cars and the USA does not, in some states they apply a small state tax bit that's all. The result is, for an equivalent size economy, the USA is a larger export market. This is why the USA claim VAT is a form of tariff. If the USA can stop the UK Government applying tariffs and VAT to cars they will become much cheaper in the UK.
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For Germany they will have to put tariffs on BMW's, which will go to the EU not to the German people. The Bavarians will have to buy Chines cars which are popular in Germany at the moment and are about to be manufactured in Turkey to avoid EU tariffs.
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I believe the USA's main aim is to get manufactures to manufacture in the USA rather than allowing manufacturers to abuse existing trading agreements with countries like Mexico.

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