Will US Tariffs Increase UK Car Lease Prices?
Potentially, if the UK government introduces reciprocal 10% import tariffs on US-manufactured goods, vehicles built in American factories would become more expensive to bring into the UK.
Tariffs are charged when the car enters the UK, which increases the cost of the vehicle before it is sold to a dealer or offered on a lease.
For car leasing customers, higher vehicle costs would then likely translate into higher monthly lease payments since lease pricing is calculated using the vehicle's purchase price, predicted future value, and financing costs.
Which Cars Are Made in the USA?
Several popular lease vehicles supplied to the UK market are manufactured in the United States, this means that there is potential for such vehicles to be exposed to higher import costs if tariffs are introduced.
The table below shows popular vehicles that are either at higher tariff risk or currently exempt, based on manufacturing location.
This is particularly relevant for drivers considering more premium models, where price increases have the ability to impact monthly lease costs.
| Vehicle Model | Manufacturing Location | Tariff Risk (Status) |
|---|---|---|
| BMW X5 | Spartanburg, USA | HIGH |
| Jeep Wrangler | Toledo, USA | HIGH |
| Ford Mustang | Flat Rock, USA | HIGH |
| Mercedes GLE | Tuscaloosa, USA | HIGH |
| Tesla Model Y | Berlin, Germany | Safe/Exempt [While Tesla is US-owned, the UK Model Y is European-made] |
| Ford Explorer | Cologne, Germany | Safe/Exempt |
Popular Models That Are Not Affected
The good news is that many of the UK's most popular lease vehicles are manufactured outside the United States and are therefore unaffected by potential US import tariffs.
These car models that are unaffected are typically built in the UK, Mainland Europe, or Asia, where existing trade arrangements apply.
| Vehicle Model | Manufacturing Location | Tariff Risk (Status) |
|---|---|---|
| Land Rover Defender | Slovakia | Safe |
| Nissan Qashqai | UK | Safe |
| Volkswagen Tiguan | Germany | Safe |
How to Lock in Pre-tariff Prices
The current American cars in Britain lease prices are based on today's import duties, exchange rates, and available stock. That allows for you to lease a car that has a fixed price from the point of order.
What does this mean for you?
This means that customers can secure a pre-planned monthly payment before any new tariffs take effect, so in order to avoid new tariffs or increases being made on American cars in Britain, ordering a stock vehicle is the most effective way to avoid potential price increases.
Customers interested in some of the most popular aforementioned models such as the BMW X5, Jeep Wrangler, or Ford Mustang may wish to act sooner rather than later.
So, browsing First Vehicle Leasing's in-stock lease deals today to lock in current pricing while availability remains, reducing the risk of paying tariff-driven increases in monthly lease costs.
Frequently Asked Questions
Which cars are fully manufactured in the USA?
There are many vehicles available to UK leasing customers that are fully manufactured in the United States, making them susceptible to US car tariffs and thus, price increases on leases.
These cars are particularly larger SUVs and performance models such as the BMW X5, Jeep Wrangler, Ford Mustang, and Mercedes-Benz GLE, all of which are built in American factories before being shipped to the UK for sale or lease.
Full US manufacture matters in the upcoming financial climate because these vehicles must be imported into the UK. If import tariffs are applied, the additional cost is added before the car is priced for sale or lease; this higher starting price feeds directly into lease calculations, potentially increasing monthly payments.
Will US tariffs affect car prices in the UK?
Potentially, US tariffs could affect UK car prices, particularly for models built in American factories. Simply put, if a tariff is applied when the vehicle is imported, the cost of bringing that car into the UK increases. Manufacturers and leasing providers may absorb or pass some or all of this cost on to customers through higher vehicle lease prices.
It is important to remember that lease agreements are based on the vehicle's purchase price, expected future value, and financing costs. When the purchase price rises due to tariffs, the monthly lease cost often rises too, even if the vehicle specification remains all the same.
How will US car tariffs affect the UK?
Proposed US car tariffs could raise costs for UK car exporters and finance providers, adding pressure to manufacturers and lenders.
For the leasing market, this pressure can filter through in the form of higher funding costs for the vehicle itself, this equates to tighter pricing margins, and reduced manufacturer support on affected models.
In practicality, this means UK leasing customers may see higher monthly rentals, or reduced availability on cars linked to US manufacturing or trade routes. While not every vehicle will be affected, US car tariffs do have the potential to introduce additional uncertainty into pricing, making early ordering an in-stock vehicle a more financially predictable option.
