Jaguar Land Rover suspends US exports after tariffs
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The news: Jaguar Land Rover has paused all car shipments to the US for one month, as the UK carmaker assesses its course of action after US President Donald Trump slapped 25% tariffs on all vehicle imports.
The news: The Tata Motors-owned group typically sells around 400,000 Range Rover Sports, Defenders and other models in the US each year, with sales in the US accounting for almost 25% of its annual sales.
The context: Jaguar Land Rover confirmed the decision to halt shipping to the US to Reuters, explaining that April’s shipment pause is a short-term move as the company develops mid-to-longer-term plans for managing the new trade landscape.
Jaguar Land Rover is particularly exposed to the onslaught of new tariffs as it does not have any manufacturing capability in the US.
When Trump announced 10% tariffs on the UK last week, Prime Minister Keir Starmer said that the country would not respond with reciprocal tariffs, but will instead try to secure a trade deal with Washington.
Carmakers around the globe are scrambling to reassess their operations to reduce the impact of import tariffs while boosting US manufacturing where possible. Last week, Chrysler and Jeep maker, Stellantis, announced it will furlough 900 US employees after pausing production in Mexico and Canada. Volvo is responding to the tariffs by producing another car model in its South Carolina plant.
The sources: Reuters, Financial Times
