The UK Government’s new trade agreement with the United States has brought welcome relief for British vehicle manufacturers – but has left the historic vehicle parts sector facing continued uncertainty. While a quota of up to 100,000 UK-built cars per year will now enter the US at a reduced 10% tariff, parts for historic and classic vehicles will remain subject to the existing 25% rate, prompting concern from the industry.
The deal – announced on 8 May following weeks of negotiation – softens the blow of a March policy announcement by US President Donald Trump, which introduced sweeping tariffs on imported goods. This included a proposed 25% levy on all new vehicles and components. British car makers, who exported some 102,000 vehicles to the US in 2024 – worth around £9billion – now have cause for optimism. The reduced tariff is expected to benefit manufacturers such as Jaguar Land Rover, Aston Martin and McLaren among others that count the US among key export markets.
But for the UK’s historic vehicle community, there is no such reprieve. While the import of classic vehicles (those over the age of 25) will be exempt from the tariffs, as reported last month, the Historic and Classic Vehicles Alliance has highlighted a significant oversight in the deal: it offers no relief for exporters of parts in this vital sector.
‘UK historic vehicles have long been popular with enthusiasts in the USA, and keeping these vehicles on the road depends on importing parts from the UK’s specialist supply chain,’ said HCVA CEO Dale Keller. ‘By applying the automotive tariff relief through a quota mechanism on 100,000 vehicles, the trade agreement has left many in the parts sector high and dry.’
Keller argues that components for historic vehicles should not fall within the scope of US protectionist policy, particularly as many parts are bespoke, hand-made, or rebuilt to order – and have little or no equivalent in US domestic manufacturing. ‘These pre-existing and replacement parts for historic vehicles have no reasonable prospect of being recreated as newly manufactured in the USA and surely should fall outside the US policy objectives.’
The HCVA is urging the UK Government to return to the negotiating table and secure more favourable terms for the sector in future talks. While Prime Minister Keir Starmer hailed the vehicle quota agreement as ‘a huge and important reduction’, he confirmed that discussions on the wider tariff framework – including parts – remain ongoing.
As things stand, the cost of maintaining historic vehicles in the US with British-supplied components is set to remain high. For many firms already facing increased material costs and transatlantic shipping delays, the continued tariff on components may force further price increases for overseas buyers, or lead to reduced demand.
