Jaguar Land Rover Pauses US Shipments Following New Tariffs

Iruni Kalupahana, JadeTimes Staff

I. Kalupahana is a Jadetimes news reporter covering Europe

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Image Source: Hannah

Jaguar Land Rover (JLR) has temporarily halted all vehicle exports to the United States as it weighs the impact of US trade tariffs imposed recently. The move comes after the US government imposed a 25% tariff on car imports early this week, severely impacting the UK's automotive exports.

The US is the UK car industry's second largest export destination after the European Union. Car exports to the US totaled £8.3 billion between the third quarter of 2024 and the previous 12 months, with the car being the UK's top exported good to the US.

In a statement, a JLR spokesman confirmed, "We are taking some short term measures including an April shipment pause, as we work on our mid to longer-term plans." The Coventry based company with other locations in Solihull and Wolverhampton emphasized the importance of the US as a top market for its luxury car brands.

The new tariffs are included in a broader package of trade actions imposed by President Donald Trump, which have shaken global supply chains and financial markets. Additional import taxes on car parts are scheduled next month, and a 10% tariff on all other imports from the UK.

World stock markets have responded sharply. The FTSE 100 dropped by 4.9% on Friday its biggest one day fall since the COVID-19 pandemic. Main European indexes had similar falls.

UK Prime Minister Sir Keir Starmer has proceeded with caution, choosing diplomacy over confrontation. In a phone call with French President Emmanuel Macron, both leaders agreed that "a trade war was in nobody's interest," but also that "nothing should be off the table." Sir Keir is still negotiating with other European leaders to hammer out a collective response.

The UK government is weighing its options for retaliation, although negotiations between UK and US officials are ongoing to hammer out a trade agreement to ease tensions and cancel or reduce tariffs.

As the global economy adjusts to this new trade landscape, business operators like Jaguar Land Rover strategically adjust to reflect future certainty.