Carmaker Jaguar Land Rover to pause US exports over tariffs

The manufacturer of Jaguar and Land Rover cars has stated that it will pause exports to the United States after the Trump administration imposed 25% tariffs on all car imports.

The British carmaker said on Saturday that the pause is a short-term action as it works to address the new trading terms with its business partners. The automotive company added that the pause on shipments will become effective this month.

“The USA is an important market for JLR’s luxury brands. As we work to address the new trading terms with our business partners, we are taking some short-term actions including a shipment pause in April, as we develop our mid- to longer-term plans.”

~ Jaguar Land Rover Automotive.

Jaguar Land Rover (JLR) said that the US is an important market for its luxury cars and brands. According to fact sheets from the UK Department for Business and Trade, cars are the top exported goods from the UK to the US. Car exports in the four quarters to the end of Q3 2024 totaled a staggering £8.3 billion.

Other carmakers might pause US exports too

Analysts predict that other carmakers will follow the steps of JLR and pause US exports. The imposed tariffs have added more pressure on the automotive industry in Britain. The demand for British-made cars has decreased domestically and in Europe, while sales in China have been on the decline. Furthermore, British carmakers are lagging in the electric vehicles race as factories are required to overhaul existing machinery.

University of Birmingham Professor David Bailey told The Guardian that “much of UK auto is already operating well below capacity, and the tariffs will be a further hit for a struggling industry.” He said that “production cuts and job losses are likely,” and he believes that the number of jobs at risk due to the US’s tariffs is underestimated.

Bailey thinks that JLR will continue to struggle unless it creates a US-based automotive factory. According to Reuters, German car makers Audi, Mercedes, and BMW are considering expanding their operations in the United States. Tariffs are pressuring international carmakers to move operations to the US, bringing Trump’s vision to reality.

British carmakers have taken measures to reduce the impact of US tariffs by increasing exports and building stockpiles in the States months prior to their implementation. According to data from the Society of Motor Manufacturers and Traders (SMMT), car exports to the US in December, January, and February surged by 38.5%, 12.4%, and 34.6%, respectively.

On April 3rd, the United Stated implemented a 25% tariff on imported vehicles. This tariff is applicable to vehicles from all countries including those covered under the United States-Mexico-Canada Agreement (USMCA). On May 3, 2025, the US will impose another 25% tariff on all imported automobile spare parts.

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