A growing number of motoring experts have raised concerns that the 25 percent imported car tariff introduced by the Trump Administration could result in higher prices in UK dealerships.

According to a study by the automotive consultancy firm Anderson Economic Group, the blanket tariffs could see prices of new cars in America rise by an average of $12,000 (£9,270), with manufacturers based in countries including Mexico, Japan and Germany set to be the worst affected.

Edmund King OBE, President of the AA, noted that the tariffs will also have a significant impact on the many UK-based companies that sell models in America, but was hopeful that price hikes in other markets will not be necessary.

He explained: "Car manufacturers dependent on a high proportion of sales in the United States will be hardest hit and will lose sales.

"Whether their loss of sales in the USA will increase the costs of vehicles in the UK may well depend on the competition for sales in the particular car segment market in the UK. The UK car market is already pretty competitive on price, so big hikes in prices could be counterproductive."

During 2024, 16,9 percent of the 603,595 cars produced in the UK were sent to the USA, making it the second-largest export market, after the European Union.

As a result, it is likely that the UK car industry could see a significant reduction in profits if vehicle manufacturers are forced to increase the retail prices of their cars in the America.

If the tariffs do result in a reduction in sales, some have raised concerns that the cost of new models sold in other markets, including the UK, could increase in an effort to maintain the company's profit margins.

The speculation comes as a growing number of vehicle manufacturers temporarily freeze exports to the USA in order to assess the impact that tariffs may have on profit margins and the amount customers will need to pay.

JLR were the first to announce an import freeze, highlighting that the company needs to develop a long-term plan over vehicle sales in the country.

Volkswagen Group quickly followed, pausing USA-bound deliveries until further notice. Whilst the company produces a number of models in Tennessee, around two-thirds of the vehicles sold in the country come from Mexico and Germany.

Whilst Volkswagen Group reassured customers that they have no plans to raise prices in the UK, a spokesperson for the company highlighted that the tariffs could significantly stunt economic growth in the USA and other markets.

They stated: "The US is an important market for the Volkswagen Group. We have invested more than $14 billion (£11 billion) into the market recently, support thousands of well-paid jobs, and contribute to prosperity and growth.

"We share the assessment of most experts that US tariffs and any counter-tariffs will have negative consequences for growth and prosperity in the US and other economic areas. The entire automotive industry, global supply chains and companies as well as customers will have to bear the negative consequences."

However, in addition to the cost of new cars potentially rising, some have predicted that motorists outside the USA could also experience a shift in supply of popular models.

In a bid to increase sales elsewhere, vehicle manufacturers may reshuffle where cars are sent to, with electric models being exported to markets where demand is stronger, such as Norway.

Whilst this is unlikely to be a sudden change that impacts UK drivers, with all American-bound cars featuring left-hand drive and different specifications, there is a possibility that less popular models sold in the UK could face shortages or be axed from the range altogether as other markets are prioritised.

As nations, including China, hit back at America with counter-tariffs, a spokesperson for BMW Group, owners of MINI, called for negotiations in a bid to improve the tariff between America and the EU in order to maintain the company's growth.

They explained: "Free trade and international cooperation are of immense importance worldwide and are important drivers of growth and progress. They have always been a guiding principle of the BMW Group.

"The EU and the US are the world's largest trading partners – which brings with it a great responsibility. The current negotiations should be used to remove long-standing trade barriers and thus strengthen both economic regions.

"Both sides should quickly find a transatlantic deal that will generate growth. Consumers on both sides of the Atlantic would also benefit from this."