Jaguar Land Rover Pauses Vehicle Shipments to the US

Yahoo

07-04-2025

Jaguar Land Rover is pausing shipments of new models to the US in the wake of tariffs placed on auto imports.
The automaker and its brands, owned by India's Tata Group, manufactures most of its vehicles in the UK.
UK-based automakers lack a manufacturing presence in the US, in contrast to German ones.
Jaguar Land Rover is pausing shipments of new vehicles to the US as it weighs its options following the Trump administration's tariffs placed on imported cars and trucks, in one of the first tangible effects on foreign automakers in April.
The UK will be subject to an additional 10% duty as well, with another round of baseline tariffs announced by the administration during the first week of April.
However, remaining vehicle inventory at Jaguar and Land Rover dealerships will not be subject to the tariffs while it lasts. Dealers should have weeks or months worth of vehicles on the lot that arrived before the tariffs kicked in.
Despite the remaining pre-tariff inventory, vehicle and component pricing could be affected much sooner, and this remains true for other foreign brands with a sales presence stateside.
A silver lining of sorts for Jaguar: The brand's F-Pace SUV is the sole vehicle in production at the moment, with the automaker essentially taking off this model year ahead of its transition to an EV lineup. Production of the electric I-Pace ended late last year, as did production of four other models.
Land Rover models, on the other hand, are still produced in the UK with the exception of the Discovery and Defender, which are built in Slovakia.
British car brands are considered to be especially susceptible to the Trump administration's auto tariffs as they lack a manufacturing footprint stateside, in contrast to a number of German, Japanese, Swedish, and Korean automakers.
US-market manufacturing will mitigate tariffs for those vehicles produced by BMW, Volkswagen, Mercedes-Benz, Toyota, Honda, Hyundai, and others.
The US is an important export market for JLR but by no means the only one, with China being another major market.
"Whilst charged less than other major economies, it is another deeply disappointing and potentially damaging measure, and will affect a wide range of automotive products," said Mike Hawes, chief executive of the UK's Society of Motor Manufacturers and Traders (SMMT).
"However, the most severe pain in our automotive sector is now likely to be felt by those attracting a 25% tariff on top of the existing duties, including car manufacturers and, from 3 May, the vast majority of car part suppliers."
The UK government has said it will attempt to negotiate a solution with the US, though details on the scope or timing remained unannounced as the countries of Europe absorbed the implications of the new trans-Atlantic trade landscape.
In the same boat with Jaguar Land Rover are Mini, McLaren, Aston Martin, Lotus, Rolls-Royce, and Bentley.
"We hope a deal between the UK and US can still be negotiated to reduce or even remove the tariff and recognize Government continues to work hard to secure such a deal. The industry is already facing multiple headwinds and this announcement comes at the worst possible time," Hawes added.
Will the 25% vehicle import tariffs be a longer-term phenomenon, or is this a temporary phase for US-Europe trade? Please comment below.