Jaguar Land Rover Automotive (JLR) has announced a temporary halt in shipments to the United States, following the rollout of new 25% tariffs on imported vehicles imposed by President Donald Trump. The decision marks a significant shift for one of the UK’s leading carmakers, as it evaluates how to move forward under the new trade terms.
Automaker Calls It a “Short-Term Action”
In a statement released on Saturday, JLR described the move as a “short-term action”, taken while it works on adjusting its long-term business strategy to reflect the newly imposed economic conditions.
“The USA is an important market for JLR’s luxury brands,” the company said. “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 company did not specify when it expects to resume regular shipments to the U.S.
Tariffs Take Effect as Global Trade Tensions Rise
The 25% auto tariff, announced last month, officially took effect on April 3, one day after President Trump introduced a broad package of tariffs targeting imports from dozens of countries.
This latest move impacts several automakers exporting to the U.S., but British car manufacturers are particularly affected, as the U.S. is their second-largest export market after the European Union.
According to data from the Society of Motor Manufacturers and Traders (SMMT) cited by Reuters, 20% of British-made cars are shipped to the U.S.
Automakers Tried to Stockpile Before Tariffs Hit
Some UK automakers tried to get ahead of the tariffs by building up inventory in the U.S. ahead of the April deadline. Export data shows a significant uptick in shipments to the U.S. in recent months:
- December exports up 38.5%
- January exports up 12.4%
- February exports up 34.6%
This effort was intended to buffer potential losses and ensure dealership supply, at least temporarily, as companies like JLR adjust their supply chains.