BMW has terminated the contracts of 180 agency workers at its Mini plant in Oxford, highlighting the growing strain on the UK automotive industry amid global economic pressures and newly imposed US tariffs.

The job cuts, made in April, represent a small fraction of the 3,500-strong workforce but reflect deeper issues. The Oxford plant, which once peaked at 234,000 units in 2018, produced only 110,000 cars in 2024, underscoring long-term underutilisation.

Donald Trump’s administration introduced a 25% tariff on all cars imported into the US starting 3 April. The measure is designed to pressure foreign manufacturers into moving production stateside but has instead disrupted UK carmakers reliant on US sales.

Jaguar Land Rover (JLR), Britain’s largest automotive employer, temporarily halted shipments to the US as it assessed the financial impact. Though shipments have resumed, the profitability of lower-cost models remains uncertain. Luxury models like the £105,000 Range Rover, with higher margins, are better equipped to absorb the tariff blow.

BMW also delayed a planned £600 million investment to convert the Oxford factory for electric vehicle production, amid slower-than-expected EV demand. While the project remains on the agenda, its timing is under review.

The British car industry, already weakened by post-pandemic production declines and the complex shift to electric vehicles, now faces intensified challenges. Further job losses across the sector are anticipated as manufacturers adjust to the new trading landscape.