On a recent Saturday, Jaguar Land Rover announced that it would temporarily halt its vehicle shipments to the United States starting in April. This decision trails the implementation of President Trump’s new auto tariffs. The British luxury automaker, known for producing high-end vehicles like Jaguars, Defenders, and Range Rovers, currently exports all its vehicles sold in the U.S. since it lacks manufacturing plants there. During the last quarter of 2024, Jaguar Land Rover had already shipped about 38,000 cars to the States. However, as of Thursday, a hefty 25% tariff has been slapped on imported cars by the Trump administration.
In a statement addressing the situation, Jaguar Land Rover commented, “The U.S. remains a crucial market for us. As we navigate through these new trade regulations with our partners, we’re implementing immediate measures, including halting shipments in April, while we draft plans for the medium and long term.”
The U.S. holds the title of the largest export destination for British cars, with 6.4 billion pounds (approximately $8.3 billion) worth of vehicles shipped over in 2023. This figure represents about 10% of Britain’s overall goods exports.
These fresh auto tariffs spell particular trouble for UK-based luxury car producers like Bentley and Aston Martin as well. They often sell in smaller quantities, resulting in fewer production facilities. For such companies, setting up manufacturing hubs in the U.S. hasn’t been a viable financial option, which has made it harder to dodge these tariffs.
Jaguar Land Rover, for instance, dispatches about one-fifth of its total vehicle sales to the U.S. market. During its financial year ending in March 2024, the company sold roughly 95,000 cars stateside, resulting in £6.5 billion in U.S. revenue. Should the firm absorb the entire tariff cost, it would result in a significant increase in the final price tags for their cars.
Meanwhile, other British goods entering the U.S. are subject to a 10% tariff, announced by President Trump on what he dubbed “Liberation Day.” So far, the UK government has not responded in kind, opting instead to focus on negotiating a broader trade agreement with the U.S. centered on technology. Meanwhile, consultations with businesses are planned over the next few weeks to prepare a list of American imports that could potentially face British retaliatory tariffs.
While the United States is Britain’s second-biggest trading partner, the trade volume is overshadowed by Britain’s exchanges with the European Union. The trade between the UK and the U.S. is primarily in services, although in terms of goods, things are more evenly matched. In 2023, the UK imported about £58 billion’s worth of goods and exported approximately £60 billion, as stated by the British Office for National Statistics.
On a related note, Tata Motors, the Indian parent company of Jaguar Land Rover, saw its shares plunge by over 9% last week, hitting their lowest since mid-2023.
