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Economy

Jaguar Land Rover stalls US exports over fresh duties

Jaguar and Land Rover will pause vehicle shipments to the US in April in response to new tariffs imposed by the Trump administration. With America comprising a quarter of its global sales, the automaker says it is reassessing trade strategy amid evolving economic conditions.

News Arena Network - New Delhi - UPDATED: April 6, 2025, 02:25 PM - 2 min read

Representative image.


Tata Motors’ luxury car marques Jaguar and Land Rover will halt vehicle shipments to the United States this April, following newly imposed tariffs by the Donald Trump administration, the company confirmed on Saturday.

 

“As we work to address the new trading terms with our business partners, we are enacting our planned short-term actions, including a shipment pause in April, as we develop our mid- to longer-term plans,” a spokesperson for the automaker said, while underlining that the US remains “an important market for the company’s luxury brands.”

 

The 25 per cent reciprocal tariff, imposed by Washington earlier this month, is expected to significantly impact the UK-based firm’s sales and profitability.

Jaguar Land Rover’s financial results for the year ending March 2024 revealed that the US accounted for nearly 25 per cent of its global sales—making it the company’s largest market by region.

 

The Coventry-headquartered firm, which also operates manufacturing sites in Solihull and Wolverhampton, reiterated that the US remains “an important market for JLR’s luxury brands.”


Also read: Trump tariffs may push US into recession: JP Morgan

 

Cars form the single largest export from the United Kingdom to the United States. Figures from the UK Department for Business and Trade show that in the 12 months leading up to the third quarter of 2024, British car exports to the US were worth £8.3 billion.

 

The new round of tariffs came into force on 3 April, affecting vehicles directly, while auto parts will be subjected to duties from next month. A blanket 10 per cent tariff will also be levied on all other UK imports, with some higher rates targeted at other major global economies.

 

The impact of the Trump administration’s trade policy is being felt across the luxury automobile sector. Italian supercar manufacturer Ferrari announced it will raise prices of select models in the US market by up to 10 per cent.

 

Stellantis, the parent company of Chrysler, Jeep, and Dodge, has said it will suspend production at several facilities in Mexico and Canada due to anticipated disruptions from the revised import taxes.

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