Jaguar Land Rover halts US shipments to assess new tariff impact

Jaguar Land Rover (JLR) is pausing vehicle shipments to the United States following the introduction of a new 25% tariff on car imports.

The move comes as the carmaker adapts to what it described as “new trading terms” that are disrupting global supply chains.

The US is the UK car industry’s second-largest export market after the European Union. According to official figures, vehicle exports to the US were worth £8.3 billion in the 12 months to the end of Q3 2024, making cars the UK’s top export to the country.

A JLR spokesperson confirmed the company is implementing “short-term actions including a shipment pause in April” while it develops a longer-term strategy. The manufacturer, headquartered in Coventry with major facilities in Solihull and Wolverhampton, described the US as a “key market for JLR’s luxury brands.”

The tariffs are part of a broader wave of trade measures announced by President Donald Trump, with further levies on car parts expected next month and will hit an industry already under pressure from weak demand in China, sluggish EU sales, and rising energy costs.

Professor David Bailey of Birmingham Business School called the situation “very worrying” for the UK’s Midlands car manufacturing heartland. “The region is the number one exporter of cars to the US, and the luxury segment is especially vulnerable,” he told the BBC.

He added that other premium carmakers like Crewe-based Bentley and Rolls-Royce with its operations in Solihull would also be impacted. “JLR is the jewel in the crown of the UK car industry, and the US currently accounts for one in four of its vehicle exports,” he noted.