Jaguar Land Rover has hit the brakes on exports to the United States, announcing a one-month pause in shipments of British-made vehicles . The move comes in response to a fresh 25 per cent import tariff imposed by US President Donald Trump on all cars entering the country.
The Tata Motors-owned luxury carmaker confirmed that the pause will take effect through April, as it reassesses its strategy under the new trade environment. "The USA is an important market for JLR's luxury brands," the company said in a statement. "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."
The impact of the tariff is already showing. Shares of Tata Motors plunged nearly 13 per cent on Monday, with the stock hitting a 52-week low of Rs542.55 on the BSE.
The timing couldn’t be worse for Britain’s auto industry, which is already under pressure. Vehicle production in the UK fell by 13.9 per cent last year to 779,584 units, according to figures from the Society of Motor Manufacturers and Traders (SMMT). With over 77 per cent of production meant for exports, the sector’s reliance on global markets is clear.
The United States remains the second-largest buyer of British cars after the European Union, accounting for nearly 20 per cent of total exports. For JLR, the US is a key revenue driver, with over 23 per cent of its global sales — more than 4 lakh units in FY24 — headed there, all from its UK manufacturing facilities.
Even before the tariff officially took effect on April 3, UK automakers had started preparing. Exports to the US had surged in recent months as companies built up inventory ahead of the expected disruption. SMMT data shows exports rose 38.5 per cent year-on-year in December, followed by increases of 12.4 per cent in January and 34.6 per cent in February.
The Tata Motors-owned luxury carmaker confirmed that the pause will take effect through April, as it reassesses its strategy under the new trade environment. "The USA is an important market for JLR's luxury brands," the company said in a statement. "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."
The impact of the tariff is already showing. Shares of Tata Motors plunged nearly 13 per cent on Monday, with the stock hitting a 52-week low of Rs542.55 on the BSE.
The timing couldn’t be worse for Britain’s auto industry, which is already under pressure. Vehicle production in the UK fell by 13.9 per cent last year to 779,584 units, according to figures from the Society of Motor Manufacturers and Traders (SMMT). With over 77 per cent of production meant for exports, the sector’s reliance on global markets is clear.
The United States remains the second-largest buyer of British cars after the European Union, accounting for nearly 20 per cent of total exports. For JLR, the US is a key revenue driver, with over 23 per cent of its global sales — more than 4 lakh units in FY24 — headed there, all from its UK manufacturing facilities.
Even before the tariff officially took effect on April 3, UK automakers had started preparing. Exports to the US had surged in recent months as companies built up inventory ahead of the expected disruption. SMMT data shows exports rose 38.5 per cent year-on-year in December, followed by increases of 12.4 per cent in January and 34.6 per cent in February.
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