U.K. vehicle production fell sharply for a fifth straight month in May, according to new figures, as headwinds including U.S. President Donald Trump's trade policy hit the automotive industry hard.

Data published Friday by the U.K.'s Society of Motor Manufacturers and Traders (SMMT) found that the U.K.'s new car and commercial vehicle production volumes fell by 32.8% to 49,810 units last month.

It means that, excluding 2020, when factories were shuttered during Covid-19 lockdowns, U.K. vehicle output hit its lowest level since 1949 in May.

Shipments to the European Union and the U.S. — the U.K.'s two largest markets — fell by 22.5% and 55.4%, respectively, last month.

The dramatic slowdown in car production is due in large part to ongoing model changeovers, restructuring and the impact of tariffs, SMMT said.

In early April, Trump implemented a 25% tariff on all cars and car parts imported into the U.S. — a move that prompted British luxury brands such as Aston Martin and Jaguar Land Rover to temporarily pause shipments to the U.S.

In early May, however, Trump signed an executive order to reduce the levy paid by U.S.-based firms on British cars to 10% for the first 100,000 cars imported each year.

U.K. Prime Minister Keir Starmer said at the time that the reduction in car tariffs would save hundreds of millions of pounds a year for Jaguar Land Rover alone.

"While 2025 has proved to be an incredibly challenging year for UK automotive production, there is the beginnings of some optimism for the future," Mike Hawes, chief executive of SMMT, said in a statement.

"Confirmed trade deals with crucial markets, especially the U.S. and a more positive relationship with the EU, as well as government strategies on industry and trade that recognise the critical role the sector plays in driving economic growth, should help recovery," Hawes said.

The automotive sector is recognized as the engine room of Britain's international trade. Last year, for example, the U.K. exported £9 billion ($12.36 billion) worth of cars into the U.S., accounting for more than 27% of total U.K. exports.

So far this year, total U.K. vehicle production is down 12.9% from 2024 to 348,226 units, SMMT said. It means total vehicle production has fallen to its lowest level since 1953.