Jaguar Land Rover stops car exports to the US in wake of Trump Tariffs
JLR announced a four-week pause on shipments of all its cars to the US as it comes to terms with 25% tariffs.
American motorists with their eyes on a new Range Rover or Land Rover Defender may have a long wait on their hands as Jaguar Land Rover has announced a temporary stop on all car shipments to the US. The move comes in the wake of the 25% tariffs on all car imports announced by President Donald Trump and in force since Thursday April 3.
The Trump tariffs have triggered turmoil in global stock markets and caused the biggest slump in share values since the COVID pandemic. The automotive industry is just one of those hit but the 25% blanket tariffs on all car imports to America will have major impacts for the UK’s manufacturers, as well as others around the world.
After the European Union, the US is the second biggest export market for the UK car industry and, in value terms, the UK exports more cars to the US than any other kind of goods. The trade is worth approximately £8.3bn per year and representative body, the Society of Motor Manufacturers and Traders (SMMT) has already indicated that the increased costs cannot be absorbed by car companies and prices will inevitably have to rise.
Jaguar Land Rover is apparently opting to take stock of the situation with a “pause” on exports to the US market in April. It sent around 38,000 cars across the Atlantic in the third quarter of 2024, close to the total it sold in the UK and the EU combined. A statement from JLR released on Saturday said:
"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."
"Our priorities now are delivering for our clients around the world and addressing these new US trading terms," the statement continued. Coventry-based Jaguar Land Rover has factories in Solihull, Castle Bromwich, Wolverhampton and Halewood building Jaguar, Range Rover and Land Rover models.
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