US tariffs, auto trade and the limits of the ‘Yank Tank’

GlobalData

Mon, Apr 7, 2025, 7:24 AM 6 min read

The US does not export a important quantity of rider vehicles to the UK oregon Europe. It has ne'er done so, nor indeed, is it apt to.

The crushed is simply that American rider vehicles – oregon home robust arsenic they are often lovingly known are, with precise fewer exceptions, conscionable that. Domestic. Moreover, the bulk of US accumulation comprises of ample to highly ample pick-up trucks and SUV’s, which are designed and manufactured for home depletion and ill-suited to European roads.

For example, let’s instrumentality on-street metropolis parking. Imagine driving a supersized US pick-up oregon SUV connected a acheronian and damp November evening successful London, frantically searching for a parking spot connected an Edwardian terraced thoroughfare lined to capableness with compact hatchbacks, a sprinkling of stylish coupes, saloon cars and mid-size SUVs. Near intolerable to find thing remotely suitable connected a roadworthy whose infrastructure was chiefly conceived and built by Victorian engineers successful the 19^th century.

What astir accessing multistorey car parks? Forget astir it, tallness restrictions and manoeuvrability, excessively debased and excessively small. Furthermore, the wide aesthetics of American cars bash not conform to European plan principles. The sheer bulk of these vehicles, coupled with their ‘gas-guzzling’ V6 and V8 engines, marque them wholly inappropriate and thoroughly unappealing to the overwhelming bulk of European consumers.

America’s best-selling conveyance is the Ford F-Series pickup truck. The brand’s entry-level exemplary is the F150 and, by US standards, is fitted with a tiny 2.7 litre V6 which delivers 19 mpg connected the municipality cycle. The modular substance vessel holds 23 gallons. Customers can, if they truthful wish, opt for the larger 26-gallon vessel oregon so spell the full hog and prime Ford’s 5.2 litre supercharged V8. Need I accidental more? And crucially, we travel to state prices for US consumers – petrol connected this broadside of the pond. While considered precocious successful the US astatine circa $3.64 (equivalent to £3.12/3.62 € per imperial gallon), they are a existent bargain erstwhile compared to pump prices successful the UK and Europe, presently astir $8.70 oregon £6.90/8.04 € per gallon. I remainder my case.

By contrast, the appetite for European vehicles among American consumers has ever been beardown and remains so, driven by factors specified arsenic design, performance, prime and of course, status. This imbalance successful commercialized highlights a cardinal issue: if the US aims to execute a commercialized equilibrium successful the automotive sector, it indispensable archetypal nutrient vehicles that are charismatic to European consumers, alternatively than simply penalising the European car manufacture for manufacturing cars that American consumers privation to buy. Slapping a 25% taxation connected European cars volition not marque Europeans bargain American robust but simply deprive Americans of choice. Consumers successful ‘the onshore of the escaped and the location of the brave’ simply emotion choice, beryllium it successful which car they thrust oregon which size vessel of herb ketchup they buy.