Automotive giant Jaguar Land Rover reveals a pause in the export of vehicles to the US, a market worth £6.5bn a year to the business, amid imposition of 25% tariffs. Tony McDonough reports
Jaguar Land Rover (JLR) is pausing exports to the US amid the imposition of 25% tariffs on the importation of cars.
JLR, which employs more than 3,500 people at its factory in Halewood, will face 25% tariffs on all of its vehicles being shipped to the US. Other exports to America will face a 10% tariff.
In its last full financial year, JLR saw sales of £6.5bn in the US out of £30bn in total global sales. It is believed there are around two months worth of JLR stock in America, exported before the tariffs came into force.
In a statement at the weekend, the company said: “The USA is an important market for JLR’s luxury brands.
“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.”
Total global sales for JLR are around 400,00 with a quarter being sold in the US. Most popular models sold in the Stats are the Rover Defender and Range Rover Sport.
On Saturday The Times reported that the company, owned by Indian conglomerate Tata, is deciding whether or not to increase retail prices in the US and how much it can grow sales in other markets.
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Late last week JLR issued a brief response to the imposition of the 25% tariffs. It said: “Our luxury brands have global appeal and our business is resilient, accustomed to changing market conditions.
“Our priorities now are delivering for our clients around the world and addressing these new US trading terms.”
This move by US President Donald Trump to impose import tariffs on countries around the world has prompted fears of a global shock that could lead to an economic slump.
Britain alone ships around £60bn of goods to the US each year, including pharmaceuticals, cars, and high-tech equipment.
UK Prime Minister Sir Keir Starmer is still hopeful of striking a trade deal with President Trump that may offset some of the impact of the tariffs, although that could still be months away.